What is the Currency in Lanzarote?

What is the Currency in Lanzarote?

If you’re heading to Lanzarote for a holiday in the sun, it’s helpful to understand the local currency and how to manage your money during your stay. This guide is for UK travellers visiting Lanzarote and covers the currency in use, payment methods, and tips for avoiding unnecessary fees while abroad.

What currency does Lanzarote use?

Lanzarote is one of Spain’s Canary Islands, located off the northwest coast of Africa. As it is a Spanish territory, the official currency is the euro, abbreviated as EUR and symbolised by €. It is the only legal tender used across Lanzarote and all other Canary Islands.

Whether you're dining out, shopping, or booking an excursion, you’ll pay in euros.

How is the euro structured?

The euro is divided into 100 cents, similar to pounds and pence in the UK. Banknotes are available in €5, €10, €20, €50, €100, €200 and €500 denominations, though most everyday purchases will use notes up to €50. Coins include 1, 2, 5, 10, 20 and 50 cents, along with €1 and €2 coins.

At the time of writing, £1 is worth approximately €1.15, although rates can vary depending on where and how you exchange your money.

Can you use British pounds in Lanzarote?

No. Although Lanzarote is a popular destination for British tourists, British pounds are not accepted for purchases. All payments must be made in euros. If you attempt to pay in GBP, you’ll likely be turned away or given a poor exchange rate by informal vendors.

Should you bring cash or use a card in Lanzarote?

Lanzarote has a well-developed tourist infrastructure, and most hotels, shops and restaurants accept debit and credit cards, including contactless payments. Visa and Mastercard are widely supported, while American Express may be less commonly accepted.

That said, some smaller establishments, taxis, or rural businesses may prefer cash, so it’s sensible to carry a combination of both. Many UK travellers bring euros or withdraw them locally using a fee-free travel card such as Monzo, Starling or Revolut.

Where to get euros for Lanzarote

You can exchange money in the UK before you go, though high street rates can vary. Many travellers wait to exchange currency upon arrival or withdraw cash from ATMs in Lanzarote, which are widely available in towns and tourist areas.

Avoid exchanging money at the airport, where the rates are typically poor. Instead, use ATMs linked to reputable banks, and always choose to be charged in euros, not pounds, when offered the option.

Tips for managing money in Lanzarote

• Use cards where accepted but keep some euros in cash for local use

• Avoid dynamic currency conversion—always opt to pay in euros

• Bring smaller denominations for taxis, cafés and tips

• Be cautious of high fees at standalone ATMs or private currency exchange shops

• Tipping is appreciated but not expected—rounding up the bill is common

Common mistakes to avoid

Some UK visitors mistakenly assume that the Canary Islands might have a different currency from mainland Spain, but this is not the case. Lanzarote uses the euro exclusively.

Another common oversight is using a UK bank card without checking for overseas fees, which can result in unnecessary charges. Using a dedicated travel card can save money throughout your trip.

In summary

Lanzarote uses the euro (EUR), just like mainland Spain. While card payments are widely accepted, it’s useful to have cash on hand for smaller transactions. UK travellers should exchange money wisely, use low-fee bank cards, and always pay in euros to get the best value.