How does the Vatican City maintain its economy?

A distinction is made between the Holy See and Vatican City. The Holy See is like the headquarters of the Catholic Church, including all the agencies and bureaucracy that helps keep the Church's various functions working around the world. read more

The Vatican maintains its economy via Peter's Pence. This annual collection, in additional to some tourist-related sales (stamps, museum fees), makes up the revenue of the micro-state. The Vatican is pretty much dependent on the annual collection. read more

The unique, noncommercial economy of Vatican City is supported financially by contributions (known as Peter's Pence) from Roman Catholics throughout the world, the sale of postage stamps and tourist mementos, fees for admission to museums, and the sale of publications. read more

However, the main engine of Holy See's economy is the infamous"Istituto per le Opere di Religione" (IOR), a.k.a. the Vatican Bank, which business among other things included participating in international tax evasions schemes and providing more than $1.4 billion in unsecured loans to Latin American dictators. read more