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Vouliagmeni, Greece.

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(Bob Dylan and Victor Maimudes) vacationed in Vouliagmeni, Greece, on the Mediterranean. 
“I explored the coast and swam in the sea,” Victor recalls, while Mr. Dylan stayed in the hotel, 
“typing and handwriting between smoking cigarettes, and he can do that for longer than anybody I know.”

Returning to New York, they rushed to a studio, and Mr. Dylan “blurted it all out,” 
running through 11 new songs, “one after another without rehearsing.”

From A Dylan Insider's Back Pages, The New York Times, Aug 7, 2014

Bob Dylan in Greece, 1964 (corfu blues)
Vouliagmeni (Wikipedia
Previously referred to as Vermilya in Robert Shelton's "No Direction Home, The Life and Music of Bob Dylan":