If you’re planning a trip from Great Britain 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 in Lanzarote and avoid currency exchanges at airport counters and ATMs.
What currency is used in 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 in EU countries is the promotion of tourism, as travellers can move between eurozone countries without worrying about currency exchanges.
Do shops and restaurants in Lanzarote accept British pounds?
Shops and restaurants in Lanzarote do not accept British pounds. You must exchange your money in advance or use a debit or credit card from a provider that converts currency directly.
Paying in euros in Lanzarote also means you avoid exchange commissions, inflated rates or incorrectly calculated conversion amounts.
Should I pay by card or cash in Lanzarote?
Both payment methods are accepted on the island, but it’s best to rely mainly on electronic card payments, as this reduces the risk of loss. However, 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 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 in Lanzarote for tips, purchases at local markets, bus trips, 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 in Lanzarote: Where to withdraw money and how to avoid fees
You can withdraw cash in 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 issuing bank to avoid additional fees.
When withdrawing money, always select 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 take to Lanzarote?
The amount of cash you should include 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 between €50 and €100 per person, and for a 7-day stay between €100 and €200 per person.
Tipping in Lanzarote: Is it expected?
Tips in Lanzarote are customary, but not mandatory and usually not included in the bill. It’s a reward for the person who provided the service if you’re satisfied, and it’s best to give them directly in cash.
Currency exchange at Lanzarote Airport (ACE)
Currency exchange is available at Lanzarote Airport, but due to high commissions, 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 to your hotel to avoid high exchange commissions on arrival, which could drain 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 in 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 best 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 take advantage of all free withdrawals when withdrawing money.
Do I need cash for taxis and transfers?
Transfer services in Lanzarote are normally paid online before you arrive on the island, but if you decide to pay on arrival, you can do so with 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 in Lanzarote
To manage your money effectively in Lanzarote, you should first avoid 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 advisable to use ATMs from official banks, preferably from the same banking group as your issuing bank, and 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.
