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I think you probably mean The Republic of Kugelmugel. I don't know if it has so much been "recognized as sovereign" as "patted on the head and allowed to continue" (as a tourist attraction).
From the link:
"Kugelmugel is a micronation located in Vienna, Austria.
"In 1984, the artist Erwin Lipburger built a ball-shaped house with a barbed-wire fence around it on a small plot in the Vienna Prater and declared its independence as the Republic of Kugelmugel (the name referring to the shape). The only address within the proclaimed Republic is "Antifaschismusplatz 1" (1, Anti-Fascism Square), and the founder is the only citizen. He refused to pay taxes to the Austrian government and began to print his own stamps, for which he received a prison sentence in court. Only a pardon by the Austrian President saved him from going to jail.
"As Kugelmugel came to be quite well-known in the public, it also became a tourist attraction of Vienna."
~L |
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