Kefalonia, the largest of the Ionian Islands, is known for its natural beauty, tranquil lifestyle, and welcoming community. With its stunning beaches, lush vineyards, and charming villages, Kefalonia offers an idyllic setting for a peaceful and fulfilling retirement that would also be an investment. This guide provides essential information for UK and European citizens considering retiring to Kefalonia, emphasizing the benefits and procedures involved in making this dream a reality.

Benefits of Retiring in Kefalonia

Relaxed and Fulfilling Lifestyle: Kefalonia offers a relaxed pace of life, allowing retirees to enjoy peace and tranquility. The island’s natural beauty, cultural attractions, and friendly community make it an appealing destination.

Active Expat Community: A small (around 2000 expats) but active expat community, mainly from the UK and other European countries, organizes social events and activities, providing camaraderie and support for those living away from home.

Cultural and Recreational Opportunities: Kefalonia is rich in history, with archaeological sites, museums, and historical landmarks to explore. Outdoor activities such as hiking, swimming, and sailing are plentiful.

Low-Key Nightlife: The island’s main towns offer bars and restaurants, many featuring live music, and open-air cinemas provide unique evening entertainment.

Rewarding Aspects:

• Stunning natural beauty with pristine beaches and lush forests.
• A Mediterranean climate ideal for outdoor activities.
• Relatively low cost of living compared to other European destinations.
• Delicious and healthy local cuisine rich in fresh seafood, fruits, and vegetables.
• Hospitable and friendly locals, making it easy to integrate into the community.
• Opportunities for exploration, learning, and intellectual stimulation.

Healthcare Services: Healthcare services in Kefalonia are generally of a good standard, with public and private healthcare facilities available. There is a public hospital in Argostoli, along with health centers and pharmacies across the island. Private healthcare offers a wide range of services and shorter waiting times.

Significant Locations for Retirees to Buy Property

If you’re considering buying a property in Kefalonia, here are the best areas to consider.

Argostoli, Kefalonia – Photo Credit: Municipalities of Kefalonia

Argostoli – The Capital of Kefalonia

Benefits:

• Vibrant town with a mix of modern amenities and traditional charm.
• Excellent healthcare facilities, shops, and restaurants.
• Close proximity to international connections via Kefalonia Airport.
• Access to Makris Gialos and Platis Gialos beaches.

Lixouri, Kefalonia – Photo Credit: Municipalities of Kefalonia

Lixouri – Peaceful and Scenic

Benefits:

• A quieter alternative to Argostoli, with a picturesque waterfront.
• Strong community feel, with a blend of locals and expats.
• Access to stunning beaches such as Petani and Xi.
• Lower property prices compared to Argostoli.

Fiskardo, Kefalonia – Photo Credit: Municipalities of Kefalonia

Fiscardo – The Cosmopolitan Retreat

Benefits:

• One of the most picturesque villages, famous for its Venetian-style architecture.
• Popular with international buyers, offering an upscale atmosphere.
• Beautiful harbor with luxury yachts, fine dining, and boutique shopping.
• High rental potential for investment properties.

Melissani Cave, Kefalonia – Photo Credit: Municipalities of Kefalonia

Sami – Tranquility with Stunning Views

Benefits:

• Surrounded by lush greenery and home to famous attractions like Melissani Cave.
• Access to Antisamos Beach, one of the most beautiful in Greece.
• A balance of modern conveniences and untouched nature.

Skala Kefalonia

Skala – Beachfront Living

Benefits:

• Long sandy beaches with crystal-clear waters.
• A mix of lively and quiet areas, suitable for different lifestyles.
• Popular destination for UK retirees.
• Plenty of restaurants, cafes, and medical facilities.

Procedures for Retiring in Kefalonia

1. Visa and Residency Requirements:
   • EU Citizens: EU citizens can retire in Greece without a special visa or residence permit. A Registration Certificate must be obtained after three months of residence.
   • UK Citizens (Post-Brexit): UK citizens must apply for a visa or residence permit to stay in Greece for more than 90 days within a 180-day period.
2. Visa Options for non-EU citizens:
   • Retirement Visa (Financially Independent Person Visa): The Financially Independent Person’s Visa in Greece is primarily designed for retirees, as they typically have passive income and often come from non-EU countries. However, it is available to individuals of all ages and allows unrestricted travel within Schengen countries, provided that the visa holder resides in Greece for at least six months each year.
   • Golden Visa: Obtain a residence permit by investing at least €400,000 in real estate in specific areas with less than 3,100 inhabitants, otherwise the minimum investment is €800,000.
3. Essential Documents:
   • Valid passport.
   • Proof of income or savings.
   • Comprehensive health insurance.
   • Details of accommodation in Kefalonia (lease agreement or property purchase documents).
   • Visa application form and fee.
4. Financial Planning:
   • Assess your current financial situation and retirement budget.
   • Consult a financial advisor specializing in international retirement planning.
   • Understand currency exchange and structure finances to maximize retirement income.
5. Finding a Place to Live:
   • Research the local real estate market by getting in touch with us.
   • Visit potential properties in person.
   • Consider renting before buying to experience the community.
   • Engage a lawyer specializing in Greek real estate law when purchasing property.
6. Healthcare Registration:
   • Register for healthcare to access necessary services.
   • Obtain comprehensive health insurance.

Tax Implications

• 7% Flat Tax Rate: Greece offers a flat 7% tax rate on foreign-sourced income for retirees who become tax residents, applicable for ten years.
• Eligibility: Retirees must not have been Greek tax residents in the previous five years.
• Income Coverage: The tax rate includes all categories of foreign-derived income, including rents, business proceeds, dividends, and pensions.
• Tax Treaties: Greece has tax treaties with many countries to prevent double taxation.