Vatican City, is a landlocked sovereign city-state whose territory consists of a walled enclave within the city of Rome. It has an area of approximately 44 hectares (110 acres), and a population of around 840. This makes Vatican City the smallest internationally recognized independent state in the world by both area and population.
Vatican City is an ecclesiastical or sacerdotal-monarchical state, ruled by the Bishop of Rome—the Pope. The highest state functionaries are all Catholic clergymen of various national origins. It is the sovereign territory of the Holy See (Latin: Sancta Sedes) and the location of the Pope’s residence, referred to as the Apostolic Palace. The Popes have generally resided in the area that in 1929 became Vatican City since the return from Avignon in 1377, but have also at times resided in the Quirinal Palace in Rome and elsewhere.
Vatican City is also home to cultural treasures such as St. Peter’s Basilica, the Sistine Chapel and the Vatican Museums, featuring some of the world’s most famous paintings and sculptures. The unique economy of Vatican City is supported financially by the sale of postage stamps and tourist mementos, fees for admission to museums, and the sale of publications.
The independent city-state was established in 1929 by the Lateran Treaty, signed by Cardinal Secretary of State Pietro Gasparri, on behalf of Pope Pius XI and by Prime Minister Benito Mussolini on behalf of King Victor Emmanuel III of Italy. The treaty spoke of it as a new creation (Preamble and Article III), not as a vestige of the much larger Papal States (756–1870) that had previously encompassed much of central Italy.
Vatican City State is distinct from the Holy See, which dates back to early Christianity and is the main episcopal see of 1.2 billion Latin and Eastern Catholic adherents around the globe. Ordinances of Vatican City are published in Italian; official documents of the Holy See are issued mainly in Latin. The two entities have distinct passports: the Holy See, not being a country, issues only diplomatic and service passports, whereas Vatican City State issues normal passports for its citizens. (wikipedia)