If you’re planning a trip from the UK to Lanzarote, it’s good 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 of the European Union (EU), and Lanzarote is part of Spain; therefore, the official currency is the euro (€). One of the advantages of a single currency across EU member states is the promotion of tourism, as travellers can move between eurozone countries without worrying about exchange rates.
Do shops and restaurants in Lanzarote accept British pounds?
Shops and restaurants in Lanzarote do not accept British pounds. You must exchange money before your arrival or use a debit or credit card from a provider that converts currencies directly.
If you pay in euros in Lanzarote, you also avoid exchange commissions, inflated exchange 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 payments like cards, as this reduces the risk of loss. However, you should always carry some cash for small purchases.
Use your British debit or credit card
It’s useful to have both cards. A debit card covers most daily expenses and helps you avoid debt, fees and credit card 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 your best option in Lanzarote for tips, shopping at local markets, bus travel, beach services, parking and some taxis. If you’re planning your travel budget, it’s best to keep most of it on your card and set aside a small amount of cash for small expenses.
ATMs in Lanzarote: Where you can withdraw money and how to avoid fees
You can withdraw money in Lanzarote from a network of ATMs distributed across the island. Use bank ATMs and choose one from the same group as your card issuer if possible, to avoid additional fees.
When withdrawing money, always choose the local currency option, as the fee is lower. Avoid independent ATMs, as their withdrawal fees are very high.
How much cash should I bring to Lanzarote?
The amount of cash for your travel budget in Lanzarote depends on the length of your stay and the number of people travelling with you. 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?
Tipping in Lanzarote is a common practice, but it’s not mandatory and normally not included in the bill. It’s a bonus for the person who provided the service, as long as 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 the high exchange rates applied, it’s not the most optimal option. You’ll find counters from local tour operators as well as a number of independent ATMs.
Book your airport transfer in advance, just like your hotel, to avoid expensive currency exchanges on arrival, which could affect your travel budget.
Frequently Asked Questions
Is Lanzarote in Spain?
Yes, Lanzarote is part of the Canary Islands, which belong to Spain.
Can I make contactless payments in Lanzarote?
Yes, the island has a modern payment system, so contactless payments with mobile phones or smartwatches, as well as debit and credit cards, are accepted in most shops.
What’s the best way to avoid international 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 your free withdrawal limits when withdrawing cash.
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 by credit card, debit card, PayPal and other methods. With taxis, some operators have modernised and accept contactless payments, while others only accept cash.
Important tips for managing your money in Lanzarote
To manage your money effectively in Lanzarote, first you should avoid excessive currency exchange fees. It’s best to rely on electronic payment methods like debit and credit cards, Apple Pay, Google Pay or any other option that converts currencies directly, and always choose the local currency option.
It’s also advisable to use official bank ATMs, ideally from the same group as your card issuer, and carry 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.
