Why Set Up Business in Vatican City (Holy See)
The Holy See, always referred to as the Vatican City State or just the Vatican is a landlocked sovereign city-state situated within the city of Rome in Italy. It is home to a small population of approximately 800 people. The Vatican City is the world’s smallest city-state with unique government, financial affairs and its non-commercially based economic structures. To set up business in Vatican City is one of the good decisions you can do for your firm.
The Overview of the Vatican’s Economy
The Vatican City imports, if not all, a majority of agricultural produce, other foodstuffs and all manufactured goods from Italy that supplies all its water, gas, and electricity. There are no agricultural or industrial sectors in Vatican City, and it exports nothing. Therefore, it has no balance of trade statistics. Another interesting fact about the Vatican’s economy is that there are no taxes, no restrictions on the import or export of funds, and no customs or excise duties payable in the Vatican City. In other words, staff or whoever employed to work in the Vatican does not need to file an income tax return and there is no customs duty on gasoline or any goods that they purchase in the Vatican City.
Vatican City maintains a healthy foreign relation policy with many countries. It is a member of many international organizations and institutions. The Vatican City is a member of International Telecommunications Satellite Organization (Intelsat), the Organization for Security and Co-operation in Europe (OSCE), and the United Nations High Commission for Refugees (UNHCR). Since 1 January 1999, the Vatican City used the euro as its currency. It is due to a special agreement with the European Union (council decision 1999/98). On 1 January 2002, Euro coins and notes were introduced in Vatican City. It does not issue euro banknotes and the issuance of euro-denominated coins is governed and limited by the treaty. A substantial amount of the Vatican’s wealth comes from worldwide donations to the Church. The worldwide donation to church made as a voluntary contribution of Roman Catholic in faith refers to Peter’s Pence.
Besides the donations to the Church, other channels of revenues include the tourism sector that receives a large number of tourists annually, as well as international banking and financial activities that yield interest from global investments. Despite the lacking of organized promotion of the tourism industry, tourism in the Vatican generates substantial revenue to the economy of the tiny state. The Vatican has long been one of Europe’s famous tourist attractions with its rich history and cultural treasures. Many tourists to Rome like to include the Vatican City in their itinerary due to the city-state’s strategic geographical location. The influx of tourists into the city-state has also brought in a large sum of revenue generated from tourists’ purchases, be it the purchase of souvenirs, postage stamps, coin issues, and publications, or the payment of admission charges to the Vatican museums.
Business Activities in the Vatican
Located within Rome, the Vatican is a beehive of business activities. Just like many other countries in the world, the Vatican is a city with a multitude of different business activities. The Vatican attracts millions of tourists annually where the tourism sector is one of the main pillars of economic growth. Vatican’s museums, parks, gardens, magnificent buildings, churches and etc are the breath-taking tourist attractions. Thanks to the booming tourism sector, the construction of restaurants, bars, hotels and other recreational facilities thrive in Vatican City. Vatican City is also a shopping paradise. It is where many people found shopping in the Vatican. It is easy and interesting with all sorts of shopping centres, open-air markets, and stalls.
The Vatican City is the geographical centre of the Roman Catholic Church and the largest denomination of the Christian faith. Despite its small size with a small population, the Vatican City has huge potential to connect with people worldwide. It can be the gateway to tapping into the huge EU markets. If you are looking for an opportunity to penetrate the EU market, then the Vatican City has a lot to offer!