The Principality of Monaco is a small, sovereign city-state located on the French Riviera in Western Europe. It is known for its luxurious lifestyle, stunning Mediterranean coastline, and as a tax haven. Monaco is the second smallest country in the world, covering just about 2.02 square kilometers, and has a population of around 39,000 residents. Monaco is famous for its Monte Carlo Casino, the annual Monaco Grand Prix, and its royal family, the Grimaldi family. The principality is divided into several districts, with Monaco-Ville being the historic area that houses the Prince's Palace. Despite its small size, Monaco is a significant center for finance and tourism.