Who finances the Vatican?
The Holy See is the governing body of the nation and generates money through donations; it then invests a portion of that money in stocks, bonds, and real estate. Vatican City generates revenue through museum admissions and the sale of coins, stamps, and publications.
Pope Francis has ordered that the Holy See and connected entities move all financial assets to the Institute for Works of Religion (IOR), commonly known as the Vatican bank.
It's also one of the wealthiest. The church has vast assets, including billions in real estate and some priceless art, not to mention the Vatican Bank. But its finances are largely secret. Tallying that immense wealth is pretty much impossible, according to experts.
The bank held assets worth 5.2 billion euros ($5.5 billion) at year's end, which included deposits and investments from more than 12,700 clients -- mostly Catholic religious orders around the world, Vatican offices and employees, and Catholic clergy.
Smaller-Than-Expected Deficit
With the wider scope, however, comes an increase in the size of the Vatican's listed liabilities: from 0.8 billion euros in 2020, to 2.3 billion in 2021. All in all, the difference between the total income and expenses for the Holy See's 2021 budget came in at a 3-million euros loss.
The Vatican has big investments in banking, insurance, chemicals, steel, construction, real estate. Dividends help pay for Vatican expenses and charities such as assisting 1,500,000 children and providing some measure of food and clothing to 7,000,000 needy Italians.
Vatican Euro
In 2000, Italy and the Vatican City both signed a contract which allowed the Vatican to adopt the euro as its official currency as well, despite the Vatican not being a member of the European Union or Eurozone.
The Vatican-based Institute for the Works of Religion, commonly known as the Vatican Bank, was Banco Ambrosiano's main shareholder. The Vatican Bank was accused of funnelling covert United States funds to the Polish trade union Solidarity and to the Nicaraguan Contras through Banco Ambrosiano.
As the Pope, he receives a salary of $300,000 per year. However, instead of keeping this income for personal use, Pope Francis chooses to donate it to charitable causes, further emphasizing his commitment to philanthropy. In addition to his salary, Pope Francis also receives various anonymous gifts throughout the year.
Since 1960, the company has been owned by the Hans Wilsdorf Foundation, a private family trust. Rolex SA and its subsidiary Montres Tudor SA design, make, distribute, and service wristwatches sold under the Rolex and Tudor brands.
What religion owns most of the world's wealth?
As of 2015, Christians hold the largest share of global wealth, at around 55%. The average annual income of countries correlates negatively with national levels of religiosity.
The Vatican Bank manages $64 billion of assets on behalf of its 17,400 customers, according to a Dec. 5, 2014, article in International Business Times . The bank owns $764 million in equity. The bank keeps gold reserves worth over $20 million with the U.S. Federal Reserve.
The Vatican Secret Archives is home to the largest collection of Catholic books, documents, and doctrine in the world. It boasts letters from well-known figures such as Abraham Lincoln and Mary, Queen of Scots.
Vatican City is governed as an absolute monarchy with the pope at its head. The Vatican mints its own euros, prints its own stamps, issues passports and license plates, operates media outlets and has its own flag and anthem. One government function it lacks: taxation.
Studies in the 21st century suggest that, in terms of percentage and worldwide spread, Islam is the fastest-growing major religion in the world.
Regardless of whether you're a minister performing ministerial services as an employee or a self-employed person, all of your earnings, including wages, offerings, and fees you receive for performing marriages, baptisms, funerals, etc., are subject to income tax.
Osteen is estimated to have a net worth of over $50 million, with his church taking in $43 million a year in collections.
The Vatican advertises the funds as going toward helping the poor and suffering, but a new Wall Street Journal investigation found that only 10 per cent of the more than 50 million euros ($72 million Cdn) given annually goes to those in need.
Therefore, it is not subject to the same taxation laws as Italy. However, the Vatican City State does have its own taxation system and collects taxes from its citizens and businesses. While the Vatican City State is not required to pay taxes to Italy, it does have agreements with Italy on various matters.
Swiss Guards, corps of Swiss soldiers responsible for the safety of the pope. Often called “the world's smallest army,” they serve as personal escorts to the pontiff and as watchmen for Vatican City and the pontifical villa of Castel Gandolfo.
What does the Vatican do with all its money?
The Vatican hopes to use the money gained from these donations and its other business ventures to help the poor, provide medical aid to those in need through their many hospitals, and continue to spread their religion to more and more people around the world.
Key Takeaways: The Vatican's net worth is estimated to be around $30 billion, derived from various sources. The COVID-19 pandemic has adversely affected the Vatican's finances, primarily due to the decline in tourism. Efforts for financial transparency and reform have been implemented under Pope Francis' leadership.
Cardinals who live in Vatican City or Rome, as well as diplomats of the Holy See, are also considered citizens. And technically, no-one can be born in the Vatican as there are no hospitals! For those who wish to move to the Vatican must have their citizenship approved by the Pope, or papal authority.
While the scandals of 30 years ago are yet to be fully put to bed, new ones have emerged in recent years that have sent the Vatican Bank back into the murky spotlight of before. In 2009 the bank was being investigated by authorities over money-laundering worth €180m.
