If you’re planning a trip from the UK to Lanzarote, 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 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 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 in Lanzarote accept British pounds?
Shops and restaurants in Lanzarote do not accept British pounds. You need to exchange your money before you arrive or use a debit or credit card from a provider that converts the currency directly.
Paying in euros in Lanzarote also means you avoid exchange fees, inflated rates, or poorly 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 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’s useful to have both cards. A debit card covers most everyday expenses and helps you avoid debt, fees, and credit card interest, but you need a credit card for important things like car rental or hotel check-in.
When cash remains the best option
Cash is your best option in Lanzarote for tips, local market purchases, bus fares, beach services, car parks, and some taxis. When planning your travel budget, it’s best to keep essentials on your card and set aside 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 spread across the island. Use ATMs belonging to banks and choose an ATM from the same group as your card issuer if possible to avoid extra fees.
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’re staying 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 in Lanzarote: is it expected?
Tipping in Lanzarote is a common practice, but it’s not mandatory and is usually 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 it’s not an optimal option due to high rates charged. You’ll find local tour operator counters as well as a number of independent ATMs.
Book your airport transfer in advance, as well as your hotel, to avoid costly currency exchanges on 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 use contactless payment in Lanzarote?
Yes, the island has a modern payment system, so contactless payments are accepted at most establishments with 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 optimise your free withdrawal limits when withdrawing cash.
Do I need cash for taxis and transfers?
Transfer services in Lanzarote are usually 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. For taxis, some modernised operators 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 need to avoid is 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 currency directly, and always select the local currency option.
It’s also wise to use ATMs from official banks, ideally from the same group 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.
