Krakow (Cracow), Poland

Moving to Krakow is not for the faint of heart. With a population of just 804,237, this former Free City of Cracow may seem quaint, but the bureaucratic headaches are anything but. Nearly 85% of the population is staunchly Catholic, and the Jewish minority, while growing, remains under 15%. While the city enjoyed some economic freedoms in its early days, those privileges have long since vanished, and the tax burden is heavy. Still, for those drawn to the city's rich history and intellectual activities, Krakow could be a rewarding - if challenging - destination.