The cost of living in Portugal is among the lowest in Western Europe, on average 30 percent lower than in any other country of the region. A retired couple could live here comfortably but modestly on a budget of as little as $1,500 per month.he golf courses, beaches and European lifestyle are among the many attractions of southern Portugal. By Kathleen Peddicord. + More. Portugal’s Algarve, home to more than 100,000 resident expat retirees, could be the best place in the world to retire that nobody’s talking about.