Religious freedom? Good idea! Hey Pope......how about a Hindu temple in Vatican huh?
Catholics in the Vatican are free to convert to any religion they like, except that they will no longer be regarded as Catholics.
Besides, there isn't any room. The Vatican City empire occupies .3 square miles.
Hinduism there is not officially recognised as a religion hence conversion to Hinduism can be conveniently invalidated. An individual's conversion to Hinduism and name change cannot be legalized. Tax-deductable status is not granted to Hindu organizations.
The conversion laws there are formulated make it appear as if conversions are allowed but it is still finely nuanced so as to discourage (and not provided a legal status for) conversions to Hinduism.