The Vatican is the smallest country in the world. Catholics have no right to move there. It is in no way comparable to Israel. Israel is a country that took land from others and gives it to only a particular race or religion.
A more comparable case would be if Norway declared it was only for Norwegians by blood or Lutherans/Church of Norway members. Then it would be like Israel if Norway started pushing out non Norwegians and bringing in those of Norwegian blood or Lutherans from other lands.