Ermelino Matarazzo, Brazil

With a population of just 112,333, this sleepy São Paulo suburb is hardly the bustling metropolis many expats dream of. The former headquarters of Ermelino Matarazzo's industrial empire has been repurposed as the city hall, a bureaucratic headache that exemplifies the red tape and inefficiency plaguing local government. While the Art Deco architecture has a certain charm, the city's debt of 885 million reais (around $466 million) suggests an unstable financial situation. Unless you're prepared to navigate Byzantine bureaucracy and a less-than-thriving economy, Ermelino Matarazzo is unlikely to fulfill the grand visions of most foreigners seeking a new life in Brazil.