Why Is Vatican a Country? The Fascinating Story Behind the World’s Smallest Nation

You could walk across the entire country in less than an hour. It has no hospitals where babies are born, no farms, and a population smaller than most apartment buildings. Yet this tiny place issues its own stamps, mints its own euros, and maintains diplomatic relations with nearly every nation on Earth. Welcome to Vatican City, the world’s smallest country and one of its most fascinating political puzzles.

If you’ve ever looked at a map of Rome and noticed that little dot labeled “Vatican City,” you might have wondered: wait, is that really a separate country? The short answer is yes. But the story of how 110 acres in the heart of Rome became an independent nation involves dramatic political struggles, a pope who refused to leave his palace for decades, and a treaty signed with one of history’s most infamous dictators.

Vatican City isn’t just technically a country. It’s a fully recognized sovereign state with all the official checkboxes ticked. It has borders, a government, citizens, and the legal right to conduct foreign policy. The United Nations recognizes it. So do 183 other countries around the world.

But here’s what makes it truly unique: Vatican City exists for one specific reason. It’s not about controlling resources or ruling over people. This country exists solely to guarantee that the Pope can lead the Catholic Church without answering to any government on Earth. That independence, fought over for centuries, is why Vatican City matters far beyond its tiny size.

So why is Vatican a country when it could easily have been just another historic neighborhood in Rome? Let’s dig into the fascinating history, the political deal that created it, and how this unusual nation actually works today.

What Actually Makes Something a Country?

Before we get into Vatican City’s story, we need to understand what makes any place a country in the first place. You can’t just plant a flag in your backyard and declare independence, no matter how much you disagree with your local government.

International law has pretty clear standards, mainly from something called the Montevideo Convention of 1933. According to this agreement, a state needs four things: a permanent population, a defined territory, a government, and the ability to enter into relations with other states.

Let’s see how Vatican City stacks up.

Permanent population? Check. About 800 people live within Vatican walls, though that number fluctuates. These include the Pope, cardinals, Swiss Guards, priests, nuns, and a handful of laypeople. Sure, it’s tiny compared to other countries, but there’s no minimum population requirement in international law.

Defined territory? Absolutely. Vatican City covers exactly 0.17 square miles, or about 110 acres. That’s roughly the size of 83 football fields. The borders are crystal clear, marked by medieval walls and, in some spots, just a white line on the pavement. Cross that line and you’ve technically left Italy and entered another country.

Government? Vatican City has a unique system. It’s an absolute monarchy where the Pope serves as the head of state. Below him sits the Governorate of Vatican City State, which handles the day to day running of everything from the post office to the power grid. It’s not a democracy, but it’s definitely a functioning government.

Ability to conduct foreign relations? This is where Vatican City really shines. It maintains diplomatic relations with 183 countries. The Pope sends and receives ambassadors, signs treaties, and participates in international discussions. Vatican City has permanent observer status at the United Nations, meaning it can participate in debates even though it doesn’t vote on resolutions.

But here’s something interesting: when the Vatican engages in diplomacy, it usually does so as the “Holy See” rather than “Vatican City State.” The Holy See is the central government of the Catholic Church, and it’s technically distinct from the physical country. Think of it this way: Vatican City is the country, while the Holy See is the institution that runs both the country and the worldwide Catholic Church.

This distinction confuses a lot of people, but both entities are recognized in international law. The Holy See has been conducting diplomacy for centuries, long before Vatican City became a country in 1929.

So by every measure that matters, Vatican City qualifies as a legitimate country. But it didn’t start that way.

How the Pope Went from Ruling Central Italy to Trapped in a Palace

To understand why Vatican City exists, you need to know what came before it. For over a thousand years, popes weren’t just spiritual leaders. They were actual kings ruling over a huge chunk of Italy called the Papal States.

The Papal States existed from 756 AD until 1870. At their peak, they covered about 17,000 square miles of central Italy, including Rome and extending up toward Venice. The Pope controlled armies, collected taxes, and governed millions of people. This gave the Catholic Church real political power in European affairs.

Why did popes need to rule territory? The reasoning was simple: independence. If the Pope relied on another king for protection or money, that king could influence church decisions. But if the Pope ruled his own land, he could lead the Church without outside pressure. At least that was the theory.

By the 1800s, though, Italy was changing. Different regions and kingdoms started pushing for unification. Nationalist leaders wanted to bring all Italian territories under one flag. And guess what sat right in the middle of where they wanted their united Italy? The Papal States.

The conflict came to a head in 1870. Italian forces had already taken most of the Papal States in previous years, but they’d left Rome alone out of respect for the Pope’s authority. That September, though, Italian troops marched into Rome. Pope Pius IX ordered his small army to offer token resistance, then retreat. He didn’t want a bloodbath.

On September 20, 1870, Italian soldiers breached the walls near Porta Pia. Within hours, Rome belonged to Italy. The Pope’s thousand year reign over territory was finished.

Pius IX was furious. He refused to recognize the new Italian state or accept that he’d lost his lands. The Italian government tried to smooth things over by passing the Law of Guarantees, which would have given the Pope certain rights and a yearly payment. Pius IX rejected it completely. He declared himself a “prisoner in the Vatican” and refused to set foot outside the Apostolic Palace.

This situation, called the Roman Question, dragged on for 59 years. Popes Pius IX, Leo XIII, Pius X, and Benedict XV all maintained the same stance. They wouldn’t leave the Vatican grounds and wouldn’t accept Italian sovereignty over Rome. Meanwhile, devout Catholics around the world were troubled. How could their spiritual leader have no independent territory? Was he truly free if he lived inside another country’s capital?

The standoff seemed impossible to resolve. Italy wouldn’t give Rome back, and the popes wouldn’t compromise. But then came 1929, and everything changed.

The Deal That Created Vatican City

By the 1920s, Italy had a new leader: Benito Mussolini. The fascist dictator wanted to consolidate power and gain legitimacy with Italy’s overwhelmingly Catholic population. Meanwhile, Pope Pius XI was looking for a practical solution to the Roman Question. He realized the Church would never regain the old Papal States, but maybe it could secure something smaller.

Secret negotiations began. After three years of careful diplomacy, both sides reached an agreement.

On February 11, 1929, representatives of Italy and the Holy See signed the Lateran Treaty in the Lateran Palace. Actually, it wasn’t just one document but three separate agreements: a political treaty, a concordat dealing with the Church’s role in Italy, and a financial convention.

The political treaty did several crucial things. First, it recognized Vatican City as a fully independent and sovereign state. Italy acknowledged that this tiny territory belonged to the Holy See, not to Italy. Second, it established the borders we see today, essentially the area around St. Peter’s Basilica and the Vatican Palace. Third, Italy granted Vatican City certain extraterritorial properties, meaning the Pope would control specific buildings and sites outside Vatican walls, including several churches and the Pope’s summer residence at Castel Gandolfo.

The financial convention compensated the Church for losing the Papal States. Italy paid 750 million lire plus another billion in state bonds. That’s roughly $90 million in 1929 dollars, which would be over $1.5 billion today. It wasn’t nearly equal to what the Church had lost, but it gave the Vatican financial independence.

The concordat established Catholicism as Italy’s state religion and gave the Church significant influence over Italian life, including control over marriage law and education. Most of these provisions were later modified or eliminated in 1984, but at the time they represented a major victory for the Church.

Both sides got what they wanted. Mussolini gained enormous popularity among Italian Catholics and secured the Church’s tacit acceptance of his regime. The Pope regained sovereign territory, ensuring the Church’s independence from any government. After 59 years, the Roman Question was finally answered.

On June 7, 1929, Pope Pius XI left the Vatican for the first time as head of an independent state. Crowds cheered as he crossed into St. John Lateran. The papacy had a country again.

How Vatican City Actually Works as a Country

Now that we’ve covered why Vatican City is a country and how it got that way, let’s talk about how this unusual nation functions day to day.

Vatican City is an absolute monarchy, which means the Pope has complete legislative, executive, and judicial power. There’s no constitution limiting his authority. When a new pope is elected, he has total control over the country’s government and laws.

In practice, though, popes delegate most administrative work. The Governorate of Vatican City State handles everything from maintaining buildings to managing museums to running the pharmacy. A cardinal leads the Governorate, and various departments handle specific functions like security, health services, and infrastructure.

The Vatican has its own police force called the Gendarmerie Corps. These officers handle law enforcement and border security. Separate from them are the famous Swiss Guards, who’ve protected popes since 1506. Despite their colorful Renaissance uniforms, Swiss Guards are highly trained security professionals, not just ceremonial guards.

Let’s talk about citizenship because Vatican citizenship is completely unique. You can’t be born a Vatican citizen. You can’t marry into it. You can’t apply for it through naturalization. The only way to become a Vatican citizen is to work for the Holy See in a specific capacity and live within Vatican walls.

Cardinals who live in Vatican City are citizens. So are diplomats stationed at the Vatican. Swiss Guards receive citizenship while they serve. Staff members who live on site might qualify. But here’s the catch: when you stop working for the Vatican or move outside its walls, you lose citizenship. It reverts to whatever nationality you held before.

This means Vatican City has no native population. No one grows up there as a lifelong citizen. The population constantly changes as people come to work and eventually leave. There are no families raising kids in Vatican City, no schools for local children, and no generational residents.

The economy is equally unusual. Vatican City doesn’t have industries or natural resources. It doesn’t collect income tax from citizens. So where does the money come from?

The biggest revenue sources are donations from Catholics worldwide, known as Peter’s Pence. Museums and monument admissions bring in substantial income too. The Vatican Museums, which include the Sistine Chapel, attract about five million visitors annually, each paying an entrance fee. The Vatican also sells stamps, coins, and religious items through its shops.

Vatican City uses the euro as its official currency, even though it’s not part of the European Union. It has an agreement with the EU allowing it to mint a limited number of Vatican euros. These coins are legal tender throughout Europe but are popular with collectors, which makes them worth more than face value.

The Vatican is economically self sufficient, though its finances have been controversial at times. The Vatican Bank, officially called the Institute for the Works of Religion, has faced scandals over money laundering and lack of transparency. Recent popes have pushed for financial reforms to meet international standards.

On the international stage, Vatican City maintains a massive diplomatic presence. The Holy See has embassies, called nunciatures, in countries around the world. These ambassadors, called nuncios, represent both the Pope and Vatican City State.

Vatican City holds permanent observer status at the United Nations. This means it can participate in discussions and negotiations but doesn’t vote on resolutions. It’s actively involved in discussions about human rights, peace, disarmament, and development. The Vatican often takes positions on international issues from a moral perspective rather than a political one.

The distinction between the Holy See and Vatican City State matters here. The Holy See is what conducts most diplomacy, as it’s the government of the universal Catholic Church. Vatican City State is just the physical territory. When the Pope addresses the UN or signs a treaty, he’s usually acting as head of the Holy See, not just as head of Vatican City.

This setup gives the Catholic Church an official voice in global affairs that it wouldn’t have if the Pope simply lived in Italy without sovereign territory.

What Makes Vatican City Different from Every Other Country

Vatican City breaks all the normal country molds in fascinating ways.

It’s the smallest country on Earth by both area and population. Second place isn’t even close. Monaco covers 0.78 square miles, more than four times larger. As for population, Nauru holds the title for smallest independent country with about 12,000 people, but that’s still 15 times Vatican City’s population.

Vatican City is the only country where Latin is an official language. While Italian is used for daily communication, official documents are often published in Latin. The Vatican even has a department that coins new Latin words for modern concepts like “computer” and “software.”

It’s the only absolute theocratic monarchy in the world. Iran is a theocracy, but it has elected officials. Saudi Arabia is an absolute monarchy, but it’s not run by religious leaders in the same way. Vatican City uniquely combines both elements with the Pope serving as an absolute monarch whose authority comes from his religious position.

No one is born in Vatican City. There’s no hospital, no maternity ward, and no families having babies within its borders. This makes it the only country in the world with a zero percent birth rate.

The entire country is a UNESCO World Heritage Site. UNESCO designated Vatican City for its incredible artistic and architectural treasures, including St. Peter’s Basilica, the Sistine Chapel, and countless works by masters like Michelangelo and Raphael.

Vatican City has no military forces, at least not in the traditional sense. The Swiss Guard protects the Pope but isn’t an army. The country relies on Italy for defense if any major threat emerged, though that’s never been tested.

It’s one of the few countries with no airports, highways, or railways within its actual borders, though a helipad inside Vatican walls allows the Pope to travel by helicopter. A railway station connects to Italy’s rail network, but it’s rarely used except for special occasions.

Vatican City produces no goods for export and has no agricultural sector. Everything from food to fuel must be imported. Yet it’s completely self sufficient financially thanks to donations, tourism, and investments.

What People Get Wrong About Vatican City

Several misconceptions about Vatican City persist, so let’s clear them up.

First, many people confuse “the Vatican” with “the Holy See.” We’ve touched on this, but it’s worth repeating. The Holy See is the central government of the Catholic Church and the Pope’s jurisdiction as a religious leader. Vatican City State is the physical country. The Holy See has existed for nearly 2,000 years. Vatican City has only been a country since 1929. The Holy See conducts diplomacy and signs treaties. Vatican City is the territory where the Pope lives.

Second, Vatican City is not just a neighborhood in Rome. It’s genuinely a separate country with its own borders, laws, and government. When you visit St. Peter’s Basilica, you’re literally crossing an international border, even though there are no passport checks or customs.

Third, the Pope’s role is often misunderstood. He’s both the spiritual leader of over 1.3 billion Catholics worldwide and the head of state of Vatican City. These are related but distinct roles. When he addresses Catholics about faith, he’s acting as head of the Church. When he signs laws for Vatican City or conducts diplomacy, he’s acting as a head of state.

Fourth, not all Catholic Church property belongs to Vatican City. The Church owns thousands of churches, schools, hospitals, and other buildings around the world, but these aren’t part of Vatican City State. They’re simply property owned by Catholic organizations. Even in Rome, many Catholic churches remain on Italian territory despite being owned by the Church.

Fifth, the Swiss Guard’s role is more serious than many realize. Yes, they wear colorful uniforms that look ceremonial. But Swiss Guards are trained in modern security techniques, close protection, and counter terrorism. They carry actual weapons alongside their traditional halberds. Getting into the Swiss Guard requires military training and serious qualifications.

Finally, there’s a persistent myth that Vatican City is a tax haven where you can shop duty free. While Vatican employees can purchase goods at lower prices in Vatican shops, tourists visiting St. Peter’s or the museums don’t get tax free shopping just by crossing the border. The duty free myth comes from Vatican employees’ privileges, not from general access.

Visiting Vatican City as a Tourist

Even though it’s an independent country, visiting Vatican City is remarkably easy. You don’t need a passport or visa. There’s no border control or customs check. You simply walk across the white line on the ground that marks where Italy ends and Vatican City begins, and suddenly you’re in another country.

The main attractions are St. Peter’s Basilica and the Vatican Museums. St. Peter’s is one of the largest churches in the world and holds incredible artistic treasures. Entry to the basilica itself is free, though you’ll likely wait in line. If you want to climb to the top of the dome for stunning views over Rome, there’s a small fee.

The Vatican Museums showcase one of the world’s great art collections, including works by Raphael, Leonardo da Vinci, Caravaggio, and countless other masters. The museums culminate in the Sistine Chapel, where Michelangelo’s famous ceiling frescoes have awed visitors for 500 years. Museums require tickets, and they sell out quickly during busy seasons, so booking in advance is smart.

Dress code is important. Vatican City is a religious site first and a tourist destination second. Shoulders and knees must be covered to enter St. Peter’s Basilica or the Sistine Chapel. Security will turn away visitors wearing shorts, miniskirts, or tank tops. In summer, carry a shawl or light pants to throw on before entering.

St. Peter’s Square is accessible almost anytime and is free to enter. Many people visit just to see the square and the basilica’s exterior without going inside. On Sundays when the Pope is in residence, he often appears at his window at noon to deliver a brief address and blessing to the crowd below.

If you want to see the Pope up close, papal audiences happen most Wednesday mornings when he’s in Rome. These take place either in St. Peter’s Square or in the Paul VI Audience Hall, depending on crowd size and weather. Tickets are free but must be requested in advance through the Prefecture of the Papal Household. Thousands attend these audiences to hear the Pope speak and receive his blessing.

Vatican City sees about five to six million tourists every year. That’s more annual visitors than the entire permanent population of many small countries. The crowds can be overwhelming, especially during summer and around Easter. Early morning visits or booking skip the line tours can help you avoid the worst congestion.

One amazing fact: despite being the world’s smallest country, Vatican City receives more visitors per square foot than almost anywhere else on Earth. The entire country is essentially one massive tourist attraction.

Final Thoughts

So why is Vatican a country? The simple answer is that it needs to be. For the Catholic Church to maintain independence and for the Pope to lead without political interference, having sovereign territory isn’t just symbolic. It’s essential.

Vatican City represents one of history’s most unusual compromises. After losing an empire that stretched across central Italy, the Catholic Church ended up with just 110 acres. But those 110 acres make all the difference. They transform the Pope from a religious leader living in someone else’s capital into the head of an independent state who answers to no earthly government.

The story of Vatican City is a reminder that countries come in all shapes and sizes. Some span continents. Others fit inside a single city. What matters isn’t the size of the territory but the recognition of sovereignty and the ability to govern independently.

Today, Vatican City stands as both a living museum of Renaissance art and a functioning modern state. Tourists walk through photographing the Swiss Guards and marveling at the Sistine Chapel, while just out of view, diplomats negotiate treaties, administrators run government offices, and the Pope leads a global church from the world’s smallest throne.

It’s a country unlike any other, born from centuries of conflict and compromise, existing for a singular purpose. And somehow, against all odds, this tiny dot on the map maintains just as much international presence as nations thousands of times its size.

Next time you hear someone question whether Vatican City is really a country, you’ll know the full story. Not just that it is one, but why it became one, and why that matters far beyond its tiny walls.