How important is prestige?

I'm sure this question is asked a lot but here's my situation. I'm not from the US and I'm not applying to US schools so I will be vague so more can relate, hopefully. Currently I'm applying to some really well known and respected universities in the field that I want to go into for a career. Who knows if I'll be accepted, but my parents would like me to go to one of those, obviously.

However there is a school I really really like that is a lower ranking, and lesser known outside of the country it resides in. It's the top ranked school in that country, and highly respected that every student from that country wants to go to. But outside of it I promise no one will know what I'm talking about unless you are from there. Don't get me wrong. It's an amazing school! It's got a high class education, great faculty, and really good programs that I'm very interested in. I also really like the city and country it's in, and would love to live there and experience a different place than where I am from. My parents say it's not as good as other universities, and the country isn't as respected or developed as ours so if I join that college I might as well be throwing everything away.

Does anyone feel torn like this? Does anyone have a school they really vibe with, despite it not being as prestigious? Will it ruin my future prospects in the long run? I don't know what to do.