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 effectively, it’s best to combine electronic payments like debit and credit cards with cash.
Always pay in local currency on Lanzarote and avoid currency exchange at airport counters and ATMs.
What currency is used on Lanzarote?
Spain is a member state 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 countries is that it boosts tourism, as travellers can move between Eurozone countries without worrying about currency exchange.
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 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 on the island, but it’s better to rely mainly on electronic card payments as this reduces the risk of loss. Nevertheless, you should always have some cash for small purchases.
Using your UK 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 car rental or hotel check-in.
When cash is the best option
Cash is the best option on Lanzarote for tips, purchases at local markets, bus fares, beach services, car parks, 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 minor expenses.
ATMs on Lanzarote: Where to withdraw money and how to avoid fees
You can withdraw cash on Lanzarote through the network of ATMs distributed across the island. Use ATMs from official banks and, where possible, choose an ATM that belongs to the same banking group as your card issuer to avoid additional charges.
When withdrawing money, 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 bring to Lanzarote?
The amount of cash you should plan in your travel budget for Lanzarote depends on the length of your stay and the number of travellers. For a 3-day stay, we recommend €50 to €100 per person, and for a 7-day stay, between €100 and €200 per person.
Tipping on Lanzarote: Is it expected?
Tipping on Lanzarote is common but not obligatory and usually not included in the bill. It’s a reward 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 local travel agency counters as well as a number of independent ATMs.
Book your airport transfer in advance with your hotel to avoid high exchange fees on arrival that could eat into your travel budget.
Frequently asked questions
Is Lanzarote in Spain?
Yes, Lanzarote is part of the Canary Islands, which are part of Spain.
Can I use contactless payments on Lanzarote?
Yes, the island has a modern payment system, so contactless payments are accepted in most establishments via mobile phones or smartwatches as well as debit and credit cards.
How can I better avoid foreign card fees?
There are several ways to avoid card fees: use a fintech travel card, always select the local currency option when paying, and use any free withdrawals when withdrawing cash.
Do I need cash for taxis and transfers?
Transfer services on Lanzarote are normally paid online before you arrive on the island, but if you choose 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 accept cash only.
Key points for managing your money on Lanzarote
To manage your money effectively on Lanzarote, start by avoiding excessive currency exchange fees. It’s best to rely on electronic payment methods such as debit and credit cards, Apple Pay, Google Pay, or another option that converts currencies directly, and always select the local currency option.
It’s also wise to use ATMs from official banks, preferably from the same banking group as your card issuer, and have some cash on hand for small expenses.
Sources:
- 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.
