La Chaux-de-Fonds, Switzerland

Capital City

With a population of just 37,600, La Chaux-de-Fonds is a small, isolated city in the Swiss Jura Mountains near the French border. The chilly, rainy climate and remote location mean it's not exactly a picturesque Alpine idyll - in fact, a recent severe storm caused over $70-90 million in damage. Bureaucracy is also a persistent headache, with the city's grid-like layout and 19th century watchmaking roots. However, La Chaux-de-Fonds is a renowned center of the Swiss watch industry, so it may appeal to die-hard horology enthusiasts willing to brave the challenges of living here.