14 Best Places To Live (Or Retire) For As Little As $1,200 A Month, According To A New Report

Can you really live or retire overseas on just $1,200 a month? According to a new report from International Living, the answer is yes.

The publication’s editors and contributors identified 14 destinations where couples can live comfortably on this modest budget, from Europe to Southeast Asia. That includes not just rent and groceries, but also transportation, entertainment and indulgences like eating out.

And it’s not about living small, it’s about living smart. In the right places, $1,200 a month buys you comfort, community and a rich cultural life that would cost several times more in the U.S. To put that in perspective, the average cost of living in the U.S. for a couple is $6,546 a month, according to the most recent Consumer Expenditure Survey from the Bureau of Labor Statistics. Meanwhile, the average household in the U.S. aged 65 and older spends around $4,000 a month, according to data from the Federal Reserve Bank of St. Louis.

That financial reality has more people exploring the idea of moving abroad—whether for retirement, remote work or a lifestyle change. It’s a theme reflected in other reports I’ve covered on the best places to live in the world and places so affordable you might be able to quit your job.

The destinations in this new report combine low costs with a high quality of life, proving that living overseas doesn’t have to mean sacrifice. Many places have thriving expat communities, accessible healthcare and a slower, more balanced pace of life. And an important note: Where you choose to live makes all the difference. Smaller cities and towns offer far lower housing costs than capitals.

Here’s a closer look at International Living’s top picks for where you can live—or retire—well for as little as $1,200 a month.

Europe

Where To Live: Albania

Why: On the Adriatic coast, Albania delivers Mediterranean living at a fraction of the cost of neighboring countries like Greece, Italy and Montenegro. While the capital of Tirana can be pricey, “you don’t need to live in the middle of nowhere to save money in Albania,” writes International Living. Beach towns like Vlore and Saranda combine sea views, fresh markets and a laid-back pace of life that appeals to expats.

The Cost: “You can live in Albania for $1,200 a month, but to increase your odds you should follow a few guidelines: live like a local, eat like a local and seek longer-term rentals,” writes International Living. You’ll find rents starting at $350 for a one-bedroom apartment to $465 for a two-bedroom. You can spend $20 a day on food, with meals at local restaurants often costing under $10. Utilities average $75. Public transport is cheap and reliable, and regional bus rides between cities run just $5 to $15.

Where To Live: Bulgaria

Why: Bulgaria is one of Europe’s best-value destinations. Expats are drawn to the mix of mountain and coastal scenery, lively cultural festivals and a pace of life that feels relaxed but connected. Rather than the capital of Sofia, International Living recommends smaller cities like Plovdiv (the country’s cultural hub) and Varna (on the Black Sea).

The Cost: “There isn’t much room for luxuries, frequent dining out or expensive travel, but $1,200 is more than enough to pay for rent, food, utilities, transportation and even some modest entertainment,” according to International Living. A one-bedroom apartment costs about $500 in Varna or Plovdiv, while utilities average $100 and mobile service just $18. Dining out is affordable, with dinner for two around $18, and groceries total roughly $245 a month. Public transport is efficient and cheap, and even cross-country train travel remains an inexpensive way to explore.

Where To Live: Latvia

Why: Latvia offers the charm of Europe—walkable towns, rich cultural life, abundant natural beauty—without the high price tag. International Living says that smaller cities like Kuldiga (a UNESCO World Heritage Site) and Cesis (known for its medieval castle) are far more affordable than the capital of Riga.

The Cost: With careful budgeting, a comfortable life is attainable, covering rent, food, utilities, transportation and modest entertainment,” writes International Living. “While there is little or no room for luxuries, a balanced lifestyle is possible.” A one-bedroom apartment costs about $290 in Kuldiga or Cesis. Groceries run about $320 a month, and utilities average $210. Public transit is reliable and inexpensive, making car-free living easy. Free or low-cost entertainment is easy to find, from outdoor markets to local festivals, while a movie ticket costs around $7.

Where To Live: Lithuania

Why: Lithuania offers a high quality of life at a low cost, particularly in smaller cities like Šiauliai (a historic northern hub) and Panevėžys (known for its arts scene). Expats are drawn by the country’s clean, modern infrastructure, strong cultural traditions, welcoming atmosphere, easy access to nature and—of course—its affordable European lifestyle.

The Cost: “With careful budgeting, living on $1,200 a month in Lithuania allows for a comfortable lifestyle, especially outside of the capital, Vilnius,” writes International Living. Couples can live comfortably on $1,200 a month. A one-bedroom apartment costs around $500 in Šiauliai or Panevėžys, compared to $875 in Vilnius. Groceries for two run about $350 a month, while utilities average $145 and cell service $25. Public transit and rail make it easy to explore locally and across Europe. Cultural life is affordable: A movie ticket costs about $8, and most events or festivals are low-cost or free.

Where To Live: Romania

Why: Romania delivers European charm and affordability in equal measure. Beyond the capital, Bucharest, smaller cities like Craiova (set on the banks of the Jiu River) and Sibiu (in the heart of Transylvania) offer cobblestoned streets, lively cafés and access to stunning mountain scenery at a fraction of Western European prices.

The Cost: According to International Living, with a $1,200 budget for two people, you can cover rent, food, utilities, transportation and modest entertainment. A one-bedroom apartment rents for around $385 in Craiova or Sibiu, compared to $555 in Bucharest. Groceries for two average $200 monthly, utilities run about $200 and a basic mobile plan costs roughly $20. A dinner for two at a neighborhood restaurant is just $11. Public transport and trains are efficient and inexpensive, making car-free living easy.

Central And South America

Where To Live: Colombia

Why: Colombia offers a rich lifestyle in one of South America’s most welcoming (and affordable) countries. “You’re not sipping cocktails in Bogotá’s Zona Rosa every night, but you’re also not scraping by. Think of it as a shopkeeper’s life—humble but comfortable, with access to middle-class perks like decent housing, fresh food, and occasional outings,” notes International Living. Smaller cities like Pereira, Bucaramanga, Manizales and Armenia deliver the best value, with springlike weather, friendly communities and a slower pace.

The Cost: According to International Living, couples can rent a two- or three-bedroom apartment in cities like Manizales or Pereira for $250 to $400 a month. Utilities run $50 to $100, cell phone plans about $20. Groceries for two cost roughly $200 monthly, and eating out is inexpensive: A casual meal might be under $10 per person, while even a splurge dinner with cocktails totals around $50 for two. Public transport is clean, reliable and cheap, about $50 a month.

Where To Live: El Salvador

Why: “As the Central American nation continues to thrive under its newly instituted sense of safety, El Salvador is becoming an increasingly desirable destination for relocation,” writes International Living. Beyond the capital, San Salvador, where prices have risen, smaller cities and coastal towns still offer a low-cost lifestyle surrounded by volcanoes, black-sand beaches and colorful colonial charm. Santa Ana, the country’s second-largest city, is a standout for its mix of affordability and access to urban conveniences.

The Cost: “Savvy spenders can still keep their expenses under $1,200 a month,” notes International Living. In Santa Ana, rents average under $300 for a two-bedroom home or around $300 for a central one-bedroom apartment. Utilities run about $100 per month, and meals at local restaurants often cost less than $5. Public buses cost just $0.35 per ride, while car insurance ranges from $50 to $100 a month. Along the scenic “Flower Route,” towns like Ataco, Apaneca and Juayúa offer rents of $200 to $300 and easy access to cafés, markets and festivals. Even on the coast, sea-view homes can be found for $350 a month.

Where To Live: Nicaragua

Why: “You can absolutely live in Nicaragua for $1,200 a month,” International Living notes, “but you’ll need to adapt and live like a local.” That means adjusting expectations—trading imported goods for local produce, using fans instead of full-house air conditioning and embracing community life in neighborhoods away from expat enclaves. Look to laid-back cities like León, Granada and San Juan del Sur.

The Cost: International Living estimates that a couple can live comfortably with a realistic budget of roughly $600 for rent, $300 for food, $100 for utilities, $60 for transportation, $40 for phone service and $100 for entertainment. Another tip: “Rent from a Nicaraguan rather than a foreign landlord,” the report advises. By doing so, expats not only save money but also integrate into the community, improving their Spanish and building friendships along the way.

Where To Live: Peru

Why: With its combo of affordability, cultural richness and extraordinary landscapes, Peru has become one of South America’s most appealing destinations for retirees. Look beyond Lima to colonial cities, coastal towns and rural valleys. There’s Arequipa (aka the “White City,” with 300 days of sunshine a year), the Sacred Valley (with small villages) and Trujillo (for beaches and colonial charm).

The Cost: International Living sums it up best: “On $1,200 a month, retirees can enjoy comfortable housing, fresh food and a slower pace of life in one of the world’s most culturally vibrant countries.” For example, a one-bedroom apartment in Cusco is $250 to $400, dinner out at the top restaurants costs as little as $30, groceries are about $40 per week and bus rides are just 30 cents.

Asia

Where To Live: Bali, Indonesia

Why: Bali offers an enviable lifestyle at a fraction of Western prices. “It won’t be the Instagram-ready, beach club, pool party experience of a two-week holiday, but with smart choices and a slower pace, you can live a full, adventurous and deeply rewarding life,” says International Living. Look beyond the crowded south to towns like Sanur, Sidemen and Amed, where beaches are quiet, communities are friendly and the cost of living drops dramatically.

The Cost: According to International Living, a couple can live comfortably on $1,200 a month, including housing, food and daily luxuries. Rents start around $400 to $500 a month for a guesthouse or small apartment, often with a pool. Utilities average $80, scooter rentals are $80 with fuel at $20. Dining out is both affordable and delicious: local warungs serve full meals for a few dollars, and even upscale restaurants offer dinners for under $15 per person.

Where To Live: Cambodia

Why: Cambodia has long been an overlooked country in Southeast Asia, but it offers plenty of advantages for retirees,” notes International Living. A couple can live comfortably in the capital of Phnom Penh, on $1,200 a month, with even lower costs in smaller cities like Siem Reap, Kampot and Battambang.

The Cost: Rents start around $300 to $400 a month in Phnom Penh for a furnished apartment with access to a pool or gym, and about $200 in smaller towns. Utilities average $70 to $100 a month, and cell service runs roughly $1 a week. Eating out is often cheaper than cooking: Local meals cost $2 to $3, while mid-range restaurants charge $5 to $10 per person. Transportation is equally affordable: tuk-tuks cost about 40 cents per kilometer, and even long rides across town rarely exceed a few dollars.

Where To Live: Sri Lanka

Why: “It’s possible to live a carefree, tropical island life in Sri Lanka for $1,200 a month, or even less, if you follow some simple guidelines,” writes International Living. “As with anywhere, location dictates costs.” Costs are higher in the south, so look to towns like Arugam Bay, Batticaloa and Trincomalee, which offer affordable homes close to the beach. Another valuable piece of advice: “Embracing local ways not only stretches your budget but also enriches your life.”

The Cost: Simple modern apartments near the coast rent for $275 to $350 a month, while utilities rarely exceed $70 even with occasional A/C use. A mobile plan costs about $6.50 and unlimited internet about $13.50. Food is one of Sri Lanka’s biggest draws: Local meals start at $1.50 per person, and a full dinner for two with beer averages $10. Transportation is also a bargain: A five-hour scenic train ride costs just $4.20, while a two-mile tuk-tuk trip is around $1.50.

Where To Live: Thailand

Why: “If you are happy with a simple life and spend most of your time outdoors exploring, you can save a lot on rental expenses in Thailand,” writes International Living. The country’s top pick: Chiang Mai, which has a great expat scene, rich street food culture and countless cultural festivals,

The Cost: Local apartments rent for as little as $63 a month (or $120 with air conditioning), while furnished condos in central neighborhoods are a fraction of Western prices. Street food dishes like Pad Thai and papaya salad cost around $2.50, and Western meals average $6. Transportation is minimal: a used bicycle costs $60, and short domestic flights are under $165 each way. Entertainment is affordable and abundant, from temple ceremonies and festivals to expat meetups and cultural classes. On $1,200 a month, you can comfortably cover rent, food and leisure while still saving for regional travel.

Where To Live: Vietnam

Why: Thanks to its blend of affordability, culture and quality of life, Vietnam is among the best-value destinations in Asia. “Two people can live comfortably almost anywhere in Vietnam for $1,200 per month or less,” writes International Living. From cities like Hanoi to coastal hubs like Da Nang and Nha Trang, the country offers a dynamic mix of tradition, modernity and natural beauty.

The Cost: A furnished apartment in Hanoi rents for about $265 a month, often including housekeeping and utilities. Even larger homes rarely exceed $400. Internet and phone service are among the cheapest in the world. Groceries for two run about $230 monthly, while local street food meals cost around $3 per person and dinner at a mid-range restaurant is $10 to $13 for two. Transportation is equally low-cost: public buses cost less than 50 cents per ride, and domestic flights often sell for under $30 each way.

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