Tax Disputes and United Nations Accession
Monaco's practice of providing a tax shelter for
French businessmen resulted in a 1962 dispute between the countries. A
compromise was reached by which French citizens with less than five years'
residence in Monaco were taxed at French rates, and taxes were imposed on
Monegasque companies doing more than 25% of their business outside the
principality. The country was admitted to the UN in May 1993, making it
the smallest country represented.
Monaco celebrated the 700th
anniversary of the Grimaldi reign in 1997. In 2002, the constitution was
revised to ensure that the Grimaldis retain the throne even if Crown
Prince Albert has no heir. On April 6, 2005, Prince Rainier, Europe's
longest-reigning monarch, died, and Prince Albert II succeeded him.
U.S. State Dept. Country Notes: