If you’re planning a trip from the United Kingdom to Lanzarote, you should 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 on Lanzarote and avoid currency exchange 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 promoting 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 from a provider that converts the currency directly.
Paying in Euros on Lanzarote also means you avoid exchange fees, 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 card payments as this reduces the risk of loss. However, you should always have some cash on hand for small purchases.
Use your British debit or credit card
It makes sense to have both cards. 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 car rental reservations or hotel check-in.
If cash is still your 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 best to keep the essentials on your card and set aside a small amount of cash for small expenses.
ATMs in Lanzarote: where to withdraw money and how to avoid fees
You can withdraw money from a network of ATMs located throughout Lanzarote. Use ATMs from banks and, if possible, choose an ATM from the same group as your card issuer to avoid additional charges.
When withdrawing money, always select the local currency option as the 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 how many people are with you. 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 a common practice, but not mandatory and is generally not added to 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 high rates, it’s not an optimal option. You’ll find counters from local travel operators as well as a number of independent ATMs.
Book your airport transfer in advance as well as your hotel to avoid expensive currency exchanges upon arrival that could eat into 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 using mobile phones or smartwatches as well as debit and credit cards.
How do I best avoid international card fees?
There are several ways to avoid card fees: use a fintech travel card, always choose the local currency option when making payments, and optimise your free withdrawal limits when withdrawing money.
Do I need cash for taxis and transfers?
Transfer services in Lanzarote are usually paid for online before you arrive on the island, but if you choose to pay upon arrival, you can do so by credit card, debit card, PayPal and other methods. For taxis, some modernised operators accept contactless payments, while others accept cash only.
Important tips 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 any other option that converts the currency directly, and always choose the local currency option.
It’s also advisable to use ATMs from official banks, 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.
