Akranes, Iceland

Capital City

Living costs in this stark Icelandic port town run significantly lower than Reykjavík, but the trade-off is a 31-mile commute through a 3.6-mile underwater tunnel to reach the capital. With just 8,285 residents, this industrial outpost balances fishing industry grit with quiet coastal living.

Originally settled by Irish brothers in the 9th century, Akranes didn't receive its municipal charter until 1942. The economy still revolves heavily around its fishing port, while cement production and aluminum smelting provide additional industrial muscle. The brutal subarctic climate means temperatures only crack 50°F two months out of the year, though the town's legendary football club ÍA manages to keep spirits high as a perennial powerhouse in Iceland's top division.