What Currency Is Used in Tenerife?

What currency is used in Tenerife?

If you’re planning a sunny escape to Tenerife, renting a villa, or booking activities on the island, understanding the local currency is essential. This guide is written for holidaymakers, travel agents, digital nomads, and anyone handling payments in Tenerife. We’ll explain what currency is used, how it works, and how to manage it effectively during your visit.

Tenerife’s official currency: the Euro (EUR)

Tenerife uses the euro, abbreviated as EUR and symbolised by €, as its official currency. The euro is divided into 100 cents and is used for all goods, services, wages, and transactions on the island.

Tenerife is part of the Canary Islands, an autonomous community of Spain, which means it is within both the European Union and the Eurozone. Although geographically located off the northwest coast of Africa, it is fully integrated into Spain’s political and monetary system.

Euro denominations in circulation

• Coins: 1, 2, 5, 10, 20, and 50 cents; €1 and €2

• Banknotes: €5, €10, €20, €50, €100, €200, and €500 (though €200 and €500 are rarely used in daily transactions)

Euro coins and notes are accepted across all Eurozone countries, including Spain, France, Italy, and Germany. Coins issued in Spain may feature national symbols but are still valid across the EU.

Where the euro is used in Tenerife

The euro is accepted throughout Tenerife, from Santa Cruz and Los Cristianos to Playa de las Américas and Teide National Park. All shops, hotels, restaurants, public transport services, and tourist attractions quote and accept prices in euros.

Foreign currencies such as the British Pound or US Dollar are not accepted, even in tourist areas. You will need to convert your currency to euros before or during your stay.

How the euro works in Tenerife

Tenerife follows the standard euro monetary policy set by the European Central Bank (ECB). The island does not have a separate local currency or exchange rate.

Exchange rates between the euro and other currencies (such as GBP or USD) are determined by international markets and vary daily. For example:

• £1 may exchange for around €1.15 to €1.18

• $1 may exchange for around €0.90 to €0.95

Benefits and considerations of using the euro in Tenerife

Advantages:

• Stable and widely accepted: The euro is one of the most recognised and trusted currencies globally.

• No currency conversion if travelling from another Eurozone country.

• Standardised pricing across the island for food, fuel, and accommodation.

Considerations:

• Exchange rates and fees apply if arriving from a non-euro country like the UK or US.

• Cash is still preferred in some small businesses or rural areas, especially for tips and taxi fares.

• Dynamic currency conversion traps at card terminals—always opt to pay in euros.

Common misconceptions

One common myth is that Tenerife uses a separate “Canary Islands currency” or accepts foreign money due to its location. In reality, Tenerife is legally and economically part of Spain, and only the euro is used.

Another misconception is that pounds are accepted in tourist areas. While some tour operators may quote prices in GBP, all in-person payments must be made in euros.

Tips for managing your money in Tenerife

• Use local ATMs to withdraw euros on arrival. Spanish banks like CaixaBank, Santander, and BBVA operate widely across the island.

• Avoid exchanging money at airports, which often have unfavourable rates.

• Use a fee-free travel card or debit card to minimise foreign transaction charges.

• Always choose to pay in euros when offered the option on a card machine—this avoids poor dynamic currency conversion rates.

• Carry some cash, particularly for tipping, small purchases, or in local markets.

FAQs

Can I use pounds or dollars in Tenerife?
No. Tenerife only accepts euros. You’ll need to exchange your home currency before or after arrival.

Are cards widely accepted?
Yes. Visa and Mastercard are accepted at most shops, hotels, and restaurants. Smaller businesses may prefer cash.

Should I bring euros from home or exchange in Tenerife?
It’s often better to withdraw euros from a local ATM or use a travel-friendly card rather than exchange large amounts of cash before travel.

Is tipping customary in Tenerife?
Yes. Tipping 5–10% in restaurants is appreciated, and small change for porters or taxi drivers is customary.

Real-life example

A couple from the UK travels to Tenerife with £400. They bring £100 in cash and use a travel debit card to withdraw €300 at a Santander ATM. They use the cash for markets and taxis, and their card for meals and excursions. When paying by card, they always select "Pay in euros" to avoid poor exchange rates. By managing their spending wisely, they make their holiday money stretch further.