COASTING ON PORTUGAL’S RIVIERA : Put off by the high costs of Europe? Near Lisbon is a little fishing village called Cascais, a chic but inexpensive base for exploring the many treasures along the Estoril Coast.

At the station in this small fishing port on the Atlantic, lush green topiary and fragrant flowers of every hue greeted my senses as I got off the train from Lisbon, a half-hour’s ride away. So did a billboard with revolving panels suggesting a visit to the nearby McDonald’s. A short stroll away, on Ribeira Beach, I met a fisherman named Joao, who was mending his nets with the help of his teen-age grandson. Concentrating on their chore, they mostly ignored the tourists and local shoppers strolling by them on the little square just above the sandy shore.

Joao, a wiry fellow whose lined, tobacco-brown face bespoke a lifetime of harvesting the riches of the sea, spotted me watching his work from a few feet away. “Want to see?” he beckoned, motioning for me to get closer.

I did, and marveled at the speed and dexterity with which he went about working on his nets while explaining the procedure to his grandson.

Pointing to the camera hanging from my neck, I asked the old man if I could take his picture.

“OK,” he replied with a grin, and I got off a couple of shots.

But before I could express my appreciation, he touched his woolen cap and thanked me for my interest. “ Obrigado, “ he said with a big smile.

As has been the case on previous visits to Cascais over the years, my first moments in town last year once again reminded me how this village somehow manages a successful mix of New World conveniences (McDonald’s) and Old World charms (cobblestone streets and weathered fishermen). It also reminded me why I always choose this seaside town as a base for exploring the Estoril Coast, on which Cascais stands, and even Lisbon itself, its pricier and less laid-back neighbor.

Although Portugal remains one of Europe’s least costly and least spoiled countries, Lisbon is no longer a bargain. In Cascais, on the other hand, travelers can find clean, attractive pensions for $50-$100 a night, excellent, multicourse seafood dinners with wine for $7-$15, and cove-protected beaches. The surrounding region is a microcosm of Portugal’s diverse landscape, from the misty, pine-scented hills of nearby Sintra to the dazzling luminosity of the rolling countryside. And sightseeing--or even dinner--in Lisbon is just a short train hop away.

Two major events put Spain in the international limelight last year. But although the Summer Olympics in Barcelona and the World’s Fair in Seville caught the attention of billions, cost-conscious travelers this year would do better to look next door. Just across Spain’s western border, Portugal is packed with architectural and cultural riches, and home to unfailingly hospitable people and what may be the continent’s best climate. And this nation, about the size of Maine, is especially appealing in spring and fall.

Except perhaps in Lisbon--the sophisticated but low-key capital--the country is uncrowded during off-season periods. Air fares and hotels also can cost much less than, say, Italy, France or England in the summer; and Portuguese waiters, shopkeepers, cab drivers and others who cater to visitors have more time to provide their services more efficiently.

Throughout the year, the weather--especially in the country’s central and southern regions--is similar to Southern California’s, but without the smog. This once-mighty kingdom that ruled much of the world--now a democratic republic with a population of about 11 million--is also easy for a traveler to manage.

Portugal extends only 136 miles at its widest point, and only 350 miles from top to bottom--about the distance from Los Angeles to San Jose. Within this relatively small area, more than 500 miles of coastline are dotted with sandy coves with well-kept beaches, rugged mountain ranges, verdant valleys and fertile plains. Over the centuries, this tapestry of natural features has been enhanced by a host of medieval cities, fishing villages stuck in time and old walled towns still coursed by cobblestone lanes and graced with royal palaces maintained as though the owner’s arrival was imminent.

But modern--and often chic-- attractions are also part of the landscape, from some of the best golf courses in Europe to super-deluxe hotels.

What may surprise and delight most first-time visitors is the relative low cost of just about everything except imported liquor, cigarettes and film.

And, with the notable exception of some overdeveloped resorts in the southern province of Algarve, where high-rise condos and hotels are crowded with German and Scandinavian vacationers--the smooth blending of old and new is a national characteristic.

I have visited Portugal perhaps 40 times in the past, and to my mind the perfect spot from which to conveniently sample its high points are the coastal and hillside towns along Costa do Estoril, a sort of poor man’s Riviera that stretches from the mouth of Lisbon’s Tagus River to the surfing mecca of Ericeira. Although not undiscovered by European tourists, very few Americans visit the area.

The most notable port towns along the Estoril Coast include Lord Byron’s beloved Sintra, with its grandiose palaces and the ruins of an 8th-Century Moorish castle; Guincho, an internationally renowned windsurfing hamlet close to the Europe’s most westerly point, Cabo da Roca; Estoril, best known for its splendid beaches, fashionable casino and the Palacio, one of Europe’s finest hotels and, next door, my favorite of all these villages--chic but relaxed Cascais.

Originally a fishing village and once the favored summer residence of the Portuguese royal family, Cascais lies only 22 miles from Lisbon. It can be reached on a narrow, usually busy road that skirts the coast, or along a new and faster inland turnpike. I much prefer the more scenic and relaxed ride aboard one of the venerable but efficient electric trains that run every 20 minutes or so between the capital’s Cais do Sodre station and the line’s end in the center of Cascais. There are several brief stops along the way, but the trip usually takes under 40 minutes, costs about $1.20, and most of the track runs beside the sea.

My entry into Cascais is always pleasant. After leaving the train station, it is only a few blocks to the central plaza, which opens to the sea, along narrow, curving lanes (several of them pedestrian-only streets) lined with whitewashed or pastel-hued homes with balconies full of flowers. Many of their ground floors are occupied by smart boutiques, antique shops and some of Portugal’s best seafood restaurants.

Cascais’ upscale new (or refurbished) hotels and resort facilities may attract villa-dwelling aristocrats and European trendies, but its original role as a thriving fishing village remains unchanged. The best place to soak up authentic, old-guard Cascais may be on weeknights on Lota Square, the fish market near the modern Baia Hotel. There, fishermen sell their day’s catch at the lota , or auction, grabbing each fish by the tail as local housewives and restaurateurs bid various prices amid a cacophony of shouting.

A few steps away, on the esplanade above the small harbor at Ribeira Beach, Joao and his leathery-faced fellow fishermen still mend nets and touch up their brightly colored boats as they have for generations. Another colorful tradition is the regional open market held every Wednesday morning in the heart of town, where local products such as almonds, olive oil and strands of garlic are sold. A couple of miles away, next to the bullring that is Portugal’s largest, a similar market and fair takes place on the first and third Sunday of every month.

Cascais’ central area is easily and quickly explored by foot. One of the most beautiful buildings in town is the own Hall on 9th of October Square. A few steps from the fishermen’s harbor, it’s a handsome, two-story former palace known for the large azulejos , Portugal’s traditional light-blue-and-yellow, hand-painted tiles that decorate its facade. Other buildings easily seen on a walking tour of the town: the 300-year-old Citadel, still in use as a military compound; Our Lady of the Assumption, the 16th-Century parish church whose gilded altars were carved in wood, and just a few blocks away on sprawling Gandarinha Park, the Municipal Museum, formerly the Guimaraes Palace. The museum has a library of priceless medieval illuminated manuscripts, as well as rare pieces of Indo-Portuguese furniture.

But it’s more than architecture and museums that I find particularly appealing about Cascais: Its streets and beaches are strikingly clean, and it has a relaxed, small-town atmosphere--fewer than 20,000 permanent residents live here--with fine shopping and dining, and abundant sporting facilities, chief among them the 18-hole Quinta da Marinha Golf Club designed by Robert Trent Jones.

Cascais also manages to be a classy but reasonably priced base from which to explore this compact coastal region. If it’s night life I’m after, from here I can stroll or jump in a cab and in a few minutes find myself in Estoril for an evening at its casino, which stands at the rear of a tree-lined formal garden near the sea. Both European- and American-style gambling are available after you pay about $5 for a non-resident entry pass. You could spend $65- $85 for dinner here, but a better bet would be to head for the popular English Bar on nearby Avenida Marginal, where a complete meal (featuring house specialties such as turbot with baby clams, or roast partridge) costs about $25.

And Lord Byron’s Sintra, the romantic hillside town where he wrote part of his epic poem “Childe Harold’s Pilgrimage,” is only 10 miles up the road in the misty hills north of Cascais. Sintra is dotted with lavish and fantastic former palaces and solares (manor houses) that once served as summer retreats for the royal Portuguese courts. Or, only four miles northwest of Cascais are the spacious beaches and the hill-backed dunes of Guincho. Both are easily and cheaply reached by public buses or on guided tours.

But for me, what I most appreciate about Cascais is being able to take in Lisbon’s seductive wealth of sights on day trips by rail, and returning to a quiet seaside town at night. Staying in a big city is fine for a first look at the place, but I find a little distance and a leisurely pace is the best way to savor the best of Portugal.

Guidebook: Portugal’s Estoril Coast

Getting there: Delta offers nonstop service from New York to Lisbon three times a week; TAP Air Portugal has daily flights. Restricted, advance-purchase economy fare from Los Angeles is $942 for travel in April and May. There are also packages available from these two airlines, or through tour operators in the United States that specialize in Portugal. Details are available through travel agents and the government’s tourist office in New York, listed below.

From Lisbon’s Portela Airport to Cascais by taxi, the fare is $30-$35, depending on your ability to negotiate and the driver’s willingness to make the journey. Less expensive is a cab to the Cais do Sodre rail station on Lisbon’s central waterfront--around $10, including baggage surcharge and tip. From there, take one of the frequent trains that for about $1.20 will take you to Cascais in about 40 minutes.

Where to stay: There are a wide variety of options for all budgets along the Estoril Coast, from well-kept campgrounds to deluxe hotels, regal family-owned manor houses that rent out rooms, to reasonably priced inns.

In Cascais alone, there are nearly a dozen neat and clean pensions, where double rooms range $50-$100. One of my favorites is Casa Pergola (Avenida Valbom 14; from the U.S., telephone 011- 351-1-484-0040), an elegant 18th-Century walled villa that is a short walk from the train station. Eight of its 12 rooms have private bathrooms for about $96 a night (single or double), the others run about $92. Rates include breakfast; no credit cards accepted. At the upper end of the scale, nothing tops the Hotel Albatroz (Rua Federico Arouca 100, 011-351-1-483-2821), a 19th-Century neoclassic, 37-room villa perched on a rocky bluff above two sandy coves; rates range about $260-$300 for a double. To those unaccustomed to European prices nowadays, these may appear high, but in fact they’re about half those charged at similar luxury resorts elsewhere in Western Europe.

Adjacent Estoril is the home of one of the country’s most opulent and best-run hotels, the 162-room Palacio (Parque Estoril; 011-351-1-468-0400; or in the U.S. through Leading Hotels of the World, 800-223-6800), near the Casino and the beach; same rate range as the Albatroz. Where to eat: As elsewhere in Portugal, main meals usually begin with a hearty soup. But fresh fish and shellfish, prepared in a variety of ways that nearly always include abundant garlic and olive oil, are staples along the Estoril Coast. In Cascais, you can select from more than 70 restaurants, featuring seafood or other local specialties such as fried pork and roast goat, as well as Italian, Chinese, French and German fare.

Least expensive are the tascas (taverns), where a full meal that includes appetizer or soup, fish or meat main course, a half-bottle of house wine, bread and butter, dessert (usually rice pudding or flan) runs $7-$15, including tax. I’d suggest you bring along a pocketbook menu translator since few inexpensive restaurants list their offerings in English. The dining room of the Hotel Albatroz has some of the best food in town, with full dinners starting at about $30 per person.

Port, produced on the slopes around Porto in Portugal’s northwest corner, is the country’s most famous wine, but lesser known and often as admirable are regional wines. Especially good are the reds from the Dao district, the “greens” from the Minho area (which actually are semi-sparkling whites) and Colares, a fine white grown near the Sintra hills above Cascais.

For more information: Contact the Portuguese National Tourist Office, 590 Fifth Ave., New York 10036-4704, (212) 354-4403.