Is Monaco part of France or its own country? Why do they play in the French league?

AS Monaco start their 2024/25 Champions League campaign against Barcelona on Thursday having qualified for the competition by finishing second in France’s Ligue 1. A league they have won on eight occasions, making them its fourth most successful club ever, despite not even being French.

Monaco is the world’s second smallest country (after the Vatican City) and its most densely populated country, with its population of just under 40,000 crammed into 0.77 squares miles. Less than 10,000 of those residents are Monégasque nationals.

Governed under a constitutional monarchy with Prince Albert II as its head of state, the Principality of Monaco, as it’s officially known, is a coastal sovereign city-state and one of six European microstates, along with Andorra, Liechtenstein, Malta, San Marino and the Vatican City.

A ‘mircostate’ is the term given to a sovereign state with a very small population or land area (normally both), which is recognised by larger states.

Monaco is therefore not a part of France, which borders it to the north, east and west, or Italy, which is less than 10 miles away.

Why do AS Monaco play in Ligue 1?

Due to its size, the Principality of Monaco has no national soccer league system of its own, which means AS Monaco were welcomed into the French pyramid by the French Football Federation after their foundation in 1924.

This is unique in European soccer, as Andorra, Liechtenstein, Malta and San Marino, four other mircostates, are UEFA and FIFA members that have national teams that compete at international level. Monaco, on the other hand, is an expatriated club.

There are, however, similarities with Welsh clubs Cardiff City, Swansea City, Wrexham and Newport County, who joined the English pyramid at a time when there was no league structure in Wales.

Les Monégasques, as they are nicknamed, have done rather well for themselves, as only Paris Saint-Germain (12), Saint-Étienne (10) and Marseille (nine) have won more than their eight Ligue 1 titles in the last century.

Kylian Mbappé, Thierry Henry, James Rodríguez and Radamel Falcao are among the star names that have played for the club.

What’s the difference between Monaco and Monte Carlo?

Despite its lack of size, Monaco is made up of nine administrative wards, the biggest, and most famous, of which is Monte Carlo. Informally, though, the name is also used to refer to the Monte Carlo Quarter, a larger district which also contains three additional wards.

Monte Carlo is one of Monaco’s central wards and is where the world renowned Monte Carlo Casino is located. It’s synonymous with luxury, with mega-yachts parked in the harbour and designer stores everywhere you look.

As you can probably guess, it’s not a cheap place to visit, or live. According to the Wall Street Journal, a monthly $30,000 budget would only get you a modest 1,200 square foot two-bedroom apartment.

Why do so many sports stars live in Monaco?

The microstate is, of course, also the home to the Monaco Formula One Grand Prix, one of the most glamorous sports events on the planet. A number of drivers live in the area, and not just so they can practice on the street circuit.

One of the principal reasons is that Monaco is a tax haven, with no personal income, capital gains or investment taxes. That makes it especially attractive for the uberwealthy, including Novak Djokovic, Jannik Sinner, Lewis Hamilton and Max Verstappen, who all have their primary residences there.

It does, however, depend on where you come from. U.S. citizens must pay an expatriation tax wherever they live, while French nationals living in Monaco are subject to France’s income tax because of a longstanding agreement between the two countries.