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Monaco is a small sovereign city-state. Monaco is the name of the country as well as the name of its only and capital city.Monaco is in Western Europe, bordering the Mediterranean Sea on the southern coast of France, near the border with Italy. Mediterranean with mild, wet winters and hot, dry summers. Hilly, rugged, rocky.The official language is French. English and Italian are widely spoken. Some people also speak Monegasque and Occitan (local languages). The main religion is Christianity.Monaco is the second smallest country in the world; only Vatican City is smaller. It is regarded as a tax haven, and many of its inhabitants are wealthy and from foreign countries. One of Monaco's main sources of income is tourism; each year many are attracted to its casino and pleasant climate. Monaco levies no income tax on individuals. The absence of a personal income tax in the principality has attracted to it a considerable number of wealthy "tax refugee" residents from European countries who derive the majority of their income from activity outside Monaco.The population in Monaco is 0.036 Mil (2014 est.), while the inflation rate is -1.62% (2014 est.).