If you’re planning a trip from the UK to Lanzarote, keep in mind 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 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; its official currency is therefore the Euro (€). One of the advantages of a single currency in EU member states is the increase in 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 your money before arrival or use a debit or credit card with a provider that converts currency directly.
Paying in euros in Lanzarote also means you avoid exchange fees, 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 better to rely mainly on electronic card payments as this reduces the risk of loss. However, you should always have some cash for small purchases.
Use your British debit or credit card
It’s helpful to have both cards. 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 hire or hotel check-in.
When cash remains the best option
Cash is your best option in Lanzarote for tips, purchases at local markets, bus rides, beach services, parking and some taxis. When planning your travel budget, it’s better to keep essentials on your card and set aside a small amount of cash for small expenses.
ATMs in Lanzarote: Where to withdraw money and avoid fees
You can withdraw money in Lanzarote at a network of ATMs distributed across the island. Use ATMs from banks and, where possible, choose an ATM from the same company as your card issuer 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 bring to Lanzarote?
The amount of cash for your travel budget in Lanzarote depends on the length of your stay and the number of companions. 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 in Lanzarote: Is it expected?
Tipping in Lanzarote is common practice, but it’s not mandatory and not included in the bill amount. It’s a supplement 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 it’s not an optimal option due to the high rates applied. You’ll find counters from local tourism providers as well as a number of independent ATMs.
Book your airport transfer in advance, along with your hotel, to avoid expensive currency exchanges on arrival that 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 pay contactless in Lanzarote?
Yes, the island has a modern payment system, so contactless payments are accepted at most facilities with mobile phones or smart watches 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 choose the local currency option when paying, and optimise your free withdrawal limits when withdrawing money.
Do I need cash for taxis and transfers?
Transfer services in Lanzarote are usually paid online before your arrival 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 modernised operators accept contactless payments, while others only accept cash.
Key tips for managing money in Lanzarote
To manage your money effectively in Lanzarote, you should first 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 any other option that converts currency directly, and always choose the local currency option.
It’s also wise to use ATMs from official banks, ideally from the same company as your card issuer, and bring 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.
