If you’re planning a trip from Great Britain to Lanzarote, it’s important 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 state of the European Union (EU), and Lanzarote is part of Spain; therefore, the official currency is the euro (€). One advantage of a single currency in EU countries is promoting tourism, as travellers can travel between eurozone countries without worrying about currency exchanges.
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 in advance 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 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 for small purchases.
Using your British debit or credit card
Both cards are useful. 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 or hotel check-in.
When cash is the best option
Cash is the best option in Lanzarote for tips, local market purchases, bus fares, beach services, parking, and some taxis. When planning your travel budget, it’s best to keep most of it on your card and set aside a small amount in cash for small expenses.
ATMs in Lanzarote: where to withdraw cash and how to avoid fees
You can withdraw cash in Lanzarote via the ATM network distributed across the island. Use official bank ATMs and choose an ATM belonging to the same banking group as your card issuer if possible to avoid extra fees.
When withdrawing money, always choose 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 you should plan in your travel budget for Lanzarote depends on the length of your stay and the number of travellers. For a 3-day stay, we recommend €50 to €100 per person, and for a 7-day stay between €100 and €200 per person.
Tips in Lanzarote: are they expected?
Tipping in Lanzarote is common but not mandatory and usually not included in the bill. It’s a reward for the person who provided the service if you’re satisfied, and it’s best to give them directly in cash.
Currency exchange at Lanzarote airport (ACE)
Currency exchange is available at Lanzarote airport, but due to high fees, it’s not the best option. You’ll find local travel agency counters as well as a number of independent ATMs.
Book your airport transfer in advance from your hotel to avoid high exchange fees on arrival, which could drain your travel budget.
Frequently asked questions
Is Lanzarote in Spain?
Yes, Lanzarote is part of the Canary Islands, which are part of Spain.
Can I use contactless payments in Lanzarote?
Yes, the island has a modern payment system, so contactless payments are accepted in most establishments via mobile phones or smartwatches as well as debit and credit cards.
How can I better avoid fees for foreign cards?
There are several ways to avoid card fees: use a fintech travel card, always choose the local currency option when paying, and use all free withdrawals when withdrawing cash.
Do I need cash for taxis and transfers?
Transfer services in Lanzarote are normally paid online before your arrival 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 operators are fully modernised and accept contactless payments, while others only accept cash.
Key points for managing your money in Lanzarote
To manage your money effectively in Lanzarote, you must 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 another option that converts currencies directly, and always choose the local currency option.
It’s also advisable to use official bank ATMs, preferably from the same banking group as your card issuer, and to have some cash for small expenses.
Sources:
- 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.
