If you’re planning a trip from the UK to Lanzarote, it’s important to know that the island’s currency is the Euro (€). To manage your money efficiently, it’s best to combine electronic payments like debit and credit cards with cash.
Always pay in local currency on Lanzarote and avoid exchanging at airport counters and ATMs.
What Currency Is Used on Lanzarote?
Spain is a member of the European Union (EU), and Lanzarote is part of Spain; therefore, the official currency is the Euro (€). One advantage of a single currency across EU member states is that it promotes tourism, as travellers can move between eurozone countries without worrying about exchange rates.
Do Shops and Restaurants on Lanzarote Accept British Pounds?
Shops and restaurants on Lanzarote do not accept British pounds. You’ll need to exchange your money in advance or use a debit or credit card from a provider that converts the currency directly.
Paying in Euros on Lanzarote also means you avoid exchange fees, inflated rates, or miscalculated conversion amounts.
Should I Pay by Card or Cash on Lanzarote?
Both payment methods are accepted across the island, but it’s better to rely mainly on electronic payments like cards, as this reduces the risk of loss. That said, you should always carry some cash for small purchases.
Use Your British Debit or Credit Card
Both cards are useful. A debit card covers most daily expenses and helps you avoid credit card debt, fees, and interest, but you’ll need a credit card for important things like renting a car or checking into a hotel.
When Cash Is the Best Option
Cash is the best option on Lanzarote for tips, purchases at local markets, bus fares, beach services, parking, and some taxis. When planning your travel budget, it’s best to keep most of it on your card and set aside a small amount in cash for small expenses.
ATMs on Lanzarote: Where to Withdraw Money and How to Avoid Fees
You can withdraw cash on Lanzarote through the network of ATMs scattered across the island. Use ATMs from official banks and, if possible, choose one belonging to the same group as your card issuer to avoid additional charges.
When withdrawing cash, always select the local currency option, as fees are lower. Avoid independent ATMs, as their withdrawal charges tend to be very high.
How Much Cash Should I Take to Lanzarote?
The amount of cash you should budget for Lanzarote depends on the length of your stay and the number of people travelling with you. For a three-day stay, we recommend €50 to €100 per person, and for a seven-day stay, between €100 and €200 per person.
Tipping on Lanzarote: Is It Expected?
Tipping on Lanzarote is common but not mandatory and is usually not included in the bill. It’s a bonus for the person who provided the service if you’re satisfied with it, and it’s best to give it directly in cash.
Currency Exchange at Lanzarote Airport (ACE)
Currency exchange is available at Lanzarote Airport, but due to high fees, it’s not the best option. You’ll find counters from local travel operators as well as a number of independent ATMs.
Book your airport transfer in advance with your hotel to avoid high exchange costs on arrival, which could strain your travel budget.
Frequently Asked Questions
Is Lanzarote in Spain?
Yes, Lanzarote is part of the Canary Islands, which belong to Spain.
Can I Use Contactless Payments on Lanzarote?
Yes, the island has a modern payment system, so contactless payments are accepted at most establishments via mobile phones or smartwatches as well as debit and credit cards.
What’s the Best Way to Avoid Overseas Card Fees?
There are several ways to avoid card fees: use a fintech travel card, always select the local currency option when paying, and take advantage of any fee-free withdrawals when withdrawing cash.
Do I Need Cash for Taxis and Transfers?
Transfer services on Lanzarote are normally paid online before your arrival on the island, but if you decide to pay on arrival, you can do so by credit card, debit card, PayPal, and other methods. For taxis, some operators are fully modernised and accept contactless payments, while others only accept cash.
Key Points for Managing Your Money on Lanzarote
To manage your money efficiently on Lanzarote, first avoid excessive exchange fees. It’s best to rely on electronic payment methods like debit and credit cards, Apple Pay, Google Pay, or another option that converts currency directly, and always select the local currency option.
It’s also advisable to use ATMs from official banks, preferably from the same group as your card issuer, and have some cash for small expenses.
References:
- https://www.spain.info/es/consejos-viaje/moneda-billetes
- https://www.bde.es/wbe/es/areas-actuacion/billetes-monedas
- https://www.lanzaroteguide.com/exchanging-currency-in-lanzarote/
Abdel Samouh is a tourism professional specialising in the Canary Islands, with a solid track record in visitor experience management on Lanzarote. His career has centred on promoting the island's landmark attractions and enhancing transfer and excursion services across this volcanic destination.
