Greece
Rethymno has a gorgeous harbour and great Italian-looking architecture. It's situated on Crete so loads to do - looking around Knossos (the Minotaur etc) is a good day out. Try getting a cheap local rental cottage rather than stay at the big touristy resorts.
www.rethymno.org/
www.cretetravel.com/Rethymno/Rethymno.htm
www.propertyforge.com/PropertyInGreece.htm
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