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 better to combine electronic payments like debit and credit cards with cash.
Always pay in local currency on Lanzarote and avoid currency exchanges at airport counters and ATMs.
What currency is used on Lanzarote?
Spain is a member state of the European Union (EU), and Lanzarote belongs to Spain; therefore, the official currency is the Euro (€). An advantage of a single currency across EU countries is the promotion of tourism, as travellers can move between euro 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 the currency directly.
Paying in euros on Lanzarote also means you avoid exchange fees, inflated rates, or incorrectly converted 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 payments like cards, as this reduces the risk of loss. Still, you should always have some cash for small purchases.
Using 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 car rentals or hotel check-ins.
When cash is the best option
Cash is the best option on Lanzarote for tips, purchases at local markets, bus rides, beach services, parking and certain taxis. When planning your travel budget, it’s better 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 distributed across the island. Use ATMs from official banks and, if possible, choose an ATM that belongs to the same banking group as your card issuer to avoid additional fees.
When withdrawing money, always choose the local currency option, as fees are lower. Avoid independent ATMs, as their withdrawal fees tend to be very high.
How much cash should I bring to Lanzarote?
The amount of cash you should budget for Lanzarote depends on the length of your stay and the number of travellers. 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, 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 agencies as well as a number of independent ATMs.
Book your airport transfer in advance with your hotel to avoid high exchange fees when you arrive, which could reduce your travel budget.
Frequently asked questions
Is Lanzarote in Spain?
Yes, Lanzarote is one 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.
What’s the best way to avoid foreign card fees?
There are several ways to avoid card fees: use a fintech travel card, always choose the local currency option when paying, and use all free withdrawals when withdrawing money.
Do I need cash for taxis and transfers?
Transfer services on Lanzarote are usually 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. With 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, you first need to avoid excessive currency exchange fees. It’s better 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 choose the local currency option.
It’s also advisable to use ATMs from official banks, preferably from the same banking group as your card issuer, and to have some cash 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.
