A Tranquil and Sunny Retirement Haven in Hvar, Croatia

The blue-green waters lap against the rocks where swimmers bathe and bask in the sun. The sea breeze is refreshing and carries with it the occasional whiff of meat, fish and vegetables being grilled in olive oil and garlic nearby. A few steps more, and you'll unlock your door and set down the fresh bread, asparagus and figs you've just picked up at the market. Time for a coffee on the balcony, and maybe one of the still-warm, flaky cheese pastries you couldn't resist buying.

This could be your life on sunny little Hvar (pronounced FAHR), the Mediterranean island just off of Croatia's Istrian coast. Locals proudly refer to Hvar as "Croatia's premier island." This country boasts more than 1,200 islands, so that's saying something. Foreign retirees are beginning to take notice of what Hvar has to offer, but they're hardly the first to realize its special attractions. For centuries, European notables and royalty have been drawn to this jewel of the Adriatic. The Austrians, for example, have long appreciated Hvar as a "health destination." They founded the Hvar Health Society here in 1868.

Nowhere does the best of Croatia come together as it does on Hvar. This is a small island. You can drive from end to end in 90 minutes on a road that's never more than a few miles from the sea on either side. The natural beauty is undeniable. The sea here is pristine, and the slopes and cliffs are dramatic. There are pre-historic caves, narrow stone streets, historic churches, castles, ruins, a UNESCO site and a multitude of outdoor sports and activities, all in a setting of grapes, olives, lavende and breathtaking coastline.

Hvar also boasts an attractive modern side, with nightlife and trendy cafés, restaurants and hotels. The Dalmatian culture in all its culinary, musical and lifestyle glory is ubiquitous here, as everywhere in Croatia. Life on Hvar is a study in contrasts: tranquility versus partying, solitude versus celebrity renown. It's a tourist's paradise, but more than that. Hvar is also home to some 11,500 residents, some part-time and some full-time, whose appreciation for the island goes beyond the fun and sun enjoyed by visitors.

Hvar's economy is sustained by tourism and fishing, meaning two distinct seasons. From May to October the major towns and their nearby beaches are lively and filled with people, cars (brought from the mainland) and boats – both functional fishing boats and luxury cruisers. But even during those busy times, secluded rural settings and coves offer tranquility. With most of the action and population located on the western half of the island, everywhere east of Jelsa is quieter and more nature-focused.

The other six months of the year, the pace slows significantly, and the island settles into a routine of tranquility and community, with locals focused on harvests and local festivals. Even in Hvar Town, the biggest tourist hub in summer, some restaurants and tourist-focused businesses reduce their hours or close for the off-season.

However, the year-round mild weather means that Hvar's outdoor activities can be enjoyed both in season and off. And foreigners are welcome to participate in the various off-season harvests, including the olive oil processing, which is a great way to connect with the local community and to become part of local life on the island.

Hvar Town is Hvar's largest and most bustling town. The party scene here in summer is vibrant, attracting celebrities like Prince Harry and Beyoncé. This is also a historic and culturally rich town with museums and Europe's oldest public theater.

Foreigners who've chosen to settle on Hvar typically come first for vacation and then decide to return more permanently for the peace and quiet and tranquil lifestyle, the year-round sunny weather and the extraordinary natural beauty. The resident expat community is small but welcoming, and it's easy to connect with other expats. Total Hvar, for example, is an expat group run by full-time Hvar expats Paul Bradbury and Vivian Grisogono.

Hvar probably makes the most sense as a summer home. However, foreign retirees are increasingly opting to base themselves here year-round. Croatia is at the heart of the Old World and an ideal jumping-off point for travel across Europe.

Kathleen Peddicord is the founder of the Live and Invest Overseas publishing group.