The second smallest country in the world is Monaco. Situated on the French Riviera in Western Europe, Monaco covers an area of just about 2.02 square kilometers (0.78 square miles). Despite its small size, it is known for its wealth, casinos, and as a tax haven. The country is famous for the Monte Carlo Casino and the annual Monaco Grand Prix, attracting tourists and celebrities from around the world. Monaco’s government operates as a constitutional monarchy, and its population enjoys a high standard of living, making it one of the most affluent regions globally.