What is the Currency in Italy?

What is the Currency in Italy?

If you're travelling to Italy—whether for a city break in Rome, a Tuscan villa holiday, or a coastal escape along the Amalfi Coast—it’s useful to understand the local currency and how to manage your money while abroad. This guide is written for UK travellers and explains what currency Italy uses, how to pay for things, and what to expect when spending abroad.

What is the official currency of Italy?

Italy uses the euro as its official currency. It is abbreviated as EUR and usually displayed with the symbol €. The euro is the only legal tender in Italy and across many European Union countries.

All goods and services—whether you're buying a gelato, paying for hotel accommodation, or catching a train—must be paid for in euros.

How is the euro structured?

The euro is divided into 100 cents, similar to pounds and pence in the UK. Banknotes come in denominations of €5, €10, €20, €50, €100, €200 and €500, although larger notes such as €100+ are rarely used in daily transactions. Coins include 1, 2, 5, 10, 20 and 50 cents, as well as €1 and €2.

At the time of writing, £1 is worth approximately €1.15, but exchange rates vary—so it’s wise to check current rates before travelling or exchanging money.

Can you use pounds or other currencies in Italy?

No. The euro is the only currency accepted in Italy. Foreign currencies like British pounds or US dollars cannot be used to make purchases. Some tourist-focused businesses might quote prices in GBP or USD for reference, but payment must still be made in euros.

If you're using a card, some payment terminals may offer to convert the amount into pounds. It's generally better to pay in euros to avoid dynamic currency conversion fees and get a more favourable exchange rate.

Should you bring cash or use cards in Italy?

Italy has a mixed payment culture. In most towns and cities, credit and debit cards are widely accepted at hotels, restaurants, supermarkets and tourist attractions. Contactless payments and mobile wallets like Apple Pay and Google Pay are also supported.

However, some smaller establishments—particularly in rural areas, markets or family-run restaurants—may prefer cash or have minimum spend limits for card use. It’s sensible to carry some euros in cash for smaller purchases or when visiting remote areas.

UK travellers are advised to use fee-free travel cards such as Monzo, Starling or Revolut to avoid high overseas charges and unfavourable conversion rates.

Exchanging money in Italy

You can order euros from UK banks or travel money services before your trip. However, if you prefer to exchange currency after arriving, you’ll find exchange counters in airports, train stations and city centres. Be sure to compare rates and avoid kiosks with hidden commission fees.

ATMs (bancomats) are widely available across Italy and offer a convenient way to withdraw euros. Stick to machines affiliated with major banks to avoid extra charges, and check if your UK bank imposes foreign transaction or withdrawal fees.

Tips for managing money in Italy

• Carry a mix of cash and card for flexibility

• Always choose to be charged in euros when using a UK card abroad

• Inform your bank before travelling to avoid card blocks

• Save money by using travel cards that offer good exchange rates and no foreign fees

• Be cautious at ATMs—avoid standalone machines and opt for those inside banks or well-lit areas

Common mistakes to avoid

Many travellers assume that Italy, being modern and part of the Eurozone, is entirely cashless. While digital payments are popular, cash remains important in many everyday situations—especially in local trattorias, independent shops, or when tipping.

Another mistake is allowing card machines to convert euros to pounds automatically. This is called dynamic currency conversion and almost always results in a worse rate than if you pay in euros.

In summary

Italy uses the euro (EUR) as its official currency. While card payments are common across the country, cash is still useful for smaller purchases and in less touristy areas. UK travellers should carry a combination of euros and a low-fee travel card to manage their money efficiently and avoid unnecessary costs while abroad.