Baku, Azerbaijan

Capital City

With a population of 2.3 million, Baku is a sprawling Caspian metropolis and Azerbaijan's economic engine. The city's oil wealth has fueled rapid development, but it also comes with a heavy tax burden and persistent bureaucratic headaches. Bitterly cold winters and scorching summers are the norm, and the city's reputation as the "City of Winds" is well-earned, with gale-force winds frequently causing damage. Yet for those drawn to Baku's thriving business scene and low cost of living, the tradeoffs may be worth it.