Hidden In Switzerland's Heart Is An Underrated Canton With A Below-Average Cost Of Living

For some adventurous souls who imagine living amid Switzerland's gorgeous scenery, with its breathtaking mountains and seemingly limitless wilderness, the dream may seem unattainable. Although Switzerland has a relatively low tax rate compared to other European countries, it has the highest cost of living on the continent. Still, if you know where to go, you can make your travel dreams come true.

There is one idyllic region in the country with a below-average cost of living and great access to some of its most important cities: the Obwalden canton. Not only is the small Obwalden canton one of the most beautiful areas of rural Switzerland, but it's also one of its more affordable regions. The roughly 190-square-mile Obwalden canton begins about 10 miles south of the cute lakeside city of Lucerne (which Rick Steves believes is one of the best urban gems in Switzerland). Hidden in the heart of the country, Obwalden is definitely an underrated option that you need to know about.

Another benefit of living in Obwalden is that most of its towns are also serviced by a vast array of reliable buses and trains. This access to transportation makes it easy to live in the lush Swiss countryside and commute to bigger cities like Lucerne and Zurich (Switzerland's most populous metropolis and a cultural hotspot) in just a couple of hours. Along with its access to amazing nature, the rent is, on average, about $300 less per month in Obwalden than in Zurich, per a 2022 study by the Swiss Federal Statistical Office.

In the scenic Obwalden, there are a few important hubs. The canton's lakeside capital of Sarnen has just over 10,000 people, and the idyllic towns of Kerns and Giswil are worth exploring. Perhaps the perfect option is the picturesque mountain village of Lungern, next to an emerald lake. Lungern is a charming town of just over 2,000 people surrounded by green meadows that are emblematic of the region. Lake Lungern, on which it sits, even boasts fresh drinking water. The town is truly a natural paradise and one of Switzerland's best hidden jewels.

For those looking for budget-friendly activities, the Obwalden canton holds some incredible natural wonders and epic hiking opportunities. The Engelberg-Titlis mountains are some of the most impressive in the Swiss Alps and are home to the beautiful Four Lakes Trail. Another great destination is the Titlis Cliff Walk, a 328-foot-long suspension bridge with incredible mountain views. During the snowy season, the range is home to a ski resort with some of the best slopes in the region.

Water enthusiasts need to go to Lake Sarnen, where you can take a small round-trip cruise ship on the lake or rent your own paddle boat, rowboat, or motorboat to enjoy independently. Obwalden is also a hotbed of Swiss culture and unique festivals. June is a particularly enjoyable time in the region when you can enjoy the Folk Culture Festival Obwald, a fun-filled celebration of local traditions, and a vintage car festival on the streets of Sarnen. Next to the affordable Obwalden canton, you'll find Switzerland's first UNESCO Biosphere, Entlebuch, which has stunning mountain views.