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, its official currency is the Euro (€). One of the advantages of a single currency among EU member states is the boost to 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 cash before you arrive 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 miscalculated 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 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 everyday expenses and helps you avoid debt, credit card fees and interest, but you’ll need a credit card for important things like renting a car or checking into a hotel.
When cash is still the best option
Cash is your best option in Lanzarote for tips, shopping at local markets, bus travel, beach services, parking and some taxis. When planning your travel budget, it’s best to keep most of it on your card and reserve a small amount of cash for small expenses.
ATMs in Lanzarote: where to withdraw cash and how to avoid fees
You can withdraw cash in Lanzarote from a network of ATMs distributed across the island. Use ATMs belonging to banks, and choose one from the same group as your card issuer if possible, to avoid additional charges.
When withdrawing cash, 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 how long you 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 common practice, but it’s not mandatory and is generally not included in the bill. It’s a bonus for the person who provided the service, as long as you’re satisfied with it, and it’s best given directly in cash.
Currency exchange at Lanzarote Airport (ACE)
Currency exchange is available at Lanzarote Airport, but due to the high rates applied, it’s not an optimal option. You’ll find counters from local tour operators as well as several independent ATMs.
Book your airport transfer in advance, as well as your hotel, to avoid expensive currency exchanges on arrival that 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 are accepted at most establishments with mobile phones or smart watches, as well as with 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 take advantage of your free withdrawal limits when withdrawing cash.
Do I need cash for taxis and transfers?
Transfer services in Lanzarote are generally 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. For taxis, some operators have modernised to accept contactless payments, while others only accept cash.
Key tips for managing your money in Lanzarote
To manage your money effectively in Lanzarote, the first thing you should avoid is excessive fees when exchanging currency. It’s best to rely on electronic payment methods like 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 prudent 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.
