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Thereafter, the popes resided undisturbed within the Vatican walls, and certain papal prerogatives were recognized by the This situation was resolved on 11 February 1929, when the Lateran Treaty between the Holy See and the Kingdom of Italy was signed by The Holy See, which ruled Vatican City, pursued a policy of neutrality during After the US entered into the war, the US opposed such a bombing, fearful of offending Catholic members of its military forces, but said that "they could not stop the British from bombing Rome if the British so decided". In July 2007, the Vatican accepted a proposal by two firms based respectively in On 26 November 2008, the Vatican itself put into effect a plan announced in May 2007 to cover the roof of the The gardens cover approximately 23 hectares (57 acres).

The size of Vatican City is thus unrelated to the large global reach exercised by the Holy See as an entity quite distinct from the state.However, Vatican City State itself participates in some international organizations whose functions relate to the state as a geographical entity, distinct from the non-territorial legal persona of the Holy See. Legislative authority is vested in the There are departments that deal with health, security, telecommunications, etc.The nobility that was closely associated with the Holy See at the time of the Papal States continued to be associated with the Papal Court after the loss of these territories, generally with merely nominal duties (see Vatican City State, created in 1929 by the Lateran Pacts, provides the Holy See with a temporal jurisdiction and independence within a small territory.

Euro coins and notes were introduced on 1 January 2002—the Vatican does not issue Vatican City State, which employs nearly 2,000 people, had a surplus of 6.7 million euros in 2007 but ran a deficit in 2008 of over 15 million euros.In 2012, the US Department of State's International Narcotics Control Strategy Report listed Vatican City for the first time among the nations of concern for On 24 February 2014 the Vatican announced it was establishing a secretariat for the economy, to be responsible for all economic, financial and administrative activities of the Holy See and the Vatican City State, headed by Cardinal As of 2019, Vatican City had a total population of 825, including 453 residents (regardless of citizenship) and 372 Vatican citizens residing elsewhere (diplomats of the Holy See to other countries and cardinals residing in Rome).The Holy See, not being a country, issues only diplomatic and service passports, whereas Vatican City issues normal passports for its citizens.

The British uncompromisingly said "they would bomb Rome whenever the needs of the war demanded".The name "Vatican" was already in use in the time of the Castel Gandolfo and the named basilicas are patrolled internally by There are no passport controls for visitors entering Vatican City from the surrounding Italian territory.

The confusion is made worse by the fact that the Pope is the head of both Vatican City and the Holy See. There is no general public access to the gardens, but guided tours for small groups can be arranged to the gardens and excavations under the basilica. Foreign embassies to the Holy See are located in the city of Rome; only during the Second World War were the staff of some embassies accredited to the Holy See given what hospitality was possible within the narrow confines of Vatican City—embassies such as that of the United Kingdom while Rome was held by the Axis Powers and Germany's when the Allies controlled Rome.

These organs concentrate on material questions concerning the state's territory, including local security, records, transportation, and finances. A palace was constructed nearby as early as the 5th century during the pontificate of Popes gradually came to have a secular role as governors of regions near Rome. Although the Holy See, as distinct from the Vatican City State, does not fulfill the long-established criteria in international law of statehood—having a permanent population, a defined territory, a stable government and the capacity to enter into relations with other states —its possession of full legal personality in international … Vatican City became independent from Italy with the Lateran Treaty (1929), and it is a distinct territory under "full ownership, exclusive dominion, and sovereign authority and jurisdiction" of the Holy See, itself a sovereign entity of international law, which maintains the city state's temporal, diplomatic, and spiritual independence

The others are in buildings in different parts of Rome that have extraterritorial rights similar to those of embassies. In 1871, the Quirinal Palace was confiscated by the King of Italy and became the royal palace. The In 1870, the Pope's holdings were left in an uncertain situation when Italy made no attempt to interfere with the Holy See within the Vatican walls. Founded in the first century by Saints Peter and Paul, by virtue of The Holy See maintains bilateral diplomatic relations with 172 sovereign states, signs The sovereignty of the Holy See was retained despite multiple Notwithstanding, the Holy See was represented in and identified as a "permanent subject of general customary international law vis-à-vis all states" in the The Secretariat of State is the only body of the Curia that is situated within Vatican City. These organizations are much less numerous than those in which the Holy See participates either as a member or with observer status. It is distinct from the Holy See.