If you’re planning a trip from the United Kingdom to Lanzarote, it’s good to know that the island’s currency is the Euro (€). To manage your money effectively, it’s better 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 on 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 across EU member states is the boost to tourism, as travellers can move between eurozone countries without worrying about exchange rates.
Do Shops and Restaurants on Lanzarote Accept British Pounds?
Shops and restaurants on Lanzarote do not accept British pounds. You’ll need to exchange cash before you arrive or use a debit or credit card from a provider that converts currency directly.
Paying in Euros on Lanzarote also means you’ll avoid exchange fees, inflated rates, or miscalculated conversion amounts.
Should I Pay by Card or Cash on Lanzarote?
Both payment methods are accepted on the island, but it’s better 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 helpful 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 car rental or hotel check-in.
When Cash Remains Your Best Option
Cash is your best option on Lanzarote for tips, purchases at local markets, bus fares, beach services, parking, and some taxis. When planning your travel budget, it’s better to keep most of it on your card and set aside a small amount of cash for small expenses.
ATMs on Lanzarote: Where to Withdraw Money and How to Avoid Fees
You can withdraw money on Lanzarote from a network of ATMs spread across the island. Use ATMs that belong to banks, and choose one from the same group as your card issuer if possible to avoid additional charges.
When withdrawing money, always select the local currency option, as the fee is 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 for your travel budget on Lanzarote depends on the length of your stay and how many people are travelling 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 on Lanzarote: Is It Expected?
Tipping on Lanzarote is a common practice, but not mandatory and usually not included in the bill. It’s a supplement for the person who provided the service, as long as you’re satisfied, and it’s better to give it 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 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 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 on Lanzarote?
Yes, the island has a modern payment system, so contactless payments are accepted at most establishments using mobile phones or smartwatches as well as 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 select the local currency option when paying, and make the most of your free withdrawal limits when withdrawing cash.
Do I Need Cash for Taxis and Transfers?
Transfer services on Lanzarote are normally paid online before you arrive on the island, but if you decide to pay upon 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.
Key Tips for Managing Your Money on Lanzarote
To manage your money effectively on Lanzarote, the first thing you should avoid is excessive fees when exchanging currency. It’s better 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 wise 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.
