Neutrality, the legal status arising from the abstention of a state from all participation in a war between other states, the maintenance of an attitude of impartiality toward the belligerents, and the recognition by the belligerents of this abstention and impartiality. Under international law, this legal status gives rise to certain rights and duties between the neutral state and the belligerents.https://www.britannica.com/topic/neutrality
A neutral country is a state which is neutral towards belligerents in a specific war, or holds itself as permanently neutral in all future conflicts (including avoiding entering into military alliances such as NATO). As a type of non-combatant status, neutral nationals enjoy protection under the law of war from belligerent actions, to a greater extent than other non-combatants such as enemy civilians and prisoners of war.https://en.wikipedia.org/wiki/Neutral_country
Different countries interpret their neutrality differently. Some, such as Costa Rica, have demilitarized; whereas Switzerland holds to “armed neutrality” in which it deters aggression with a sizeable military while barring itself from foreign deployment. Not all neutral countries avoid any foreign deployment or alliances, however, as Austria, Ireland, Finland and Sweden have active UN peacekeeping forces and a political alliance within the European Union. The traditional Swedish policy is not to participate in military alliances, with the intention of staying neutral in the case of war. Immediately before World War II, the Nordic countries stated their neutrality, but Sweden changed its position to that of non-belligerent at the start of the Winter War. There have been considerable changes to the interpretation of neutral conduct over the past centuries. During the Cold War another European country, Yugoslavia, claimed military and ideological neutrality, and that is continued by its successor, Serbia.
Microstates and international relations: Microstates often rely on other countries in order to survive, as they have a small military capacity and a lack of resources. This had led some researchers to believe that microstates are forced to subordinate themselves to larger states which reduces their sovereignty. Research, however, has shown that microstates strategically engage in patron-client relationships with other countries. This allows them to trade some privileges to countries that can advance their interests the most. Examples of this are microstates that establish a tax haven or sell their support in international committees in exchange for military and economic support.https://en.wikipedia.org/wiki/Microstate