What is the Currency in Spain?

What is the Currency in Spain?

If you’re planning a trip to Spain—whether to enjoy the beaches of Costa del Sol, explore the streets of Barcelona, or discover the culture of Madrid—it’s important to know what currency is used and how to manage your money while travelling. This guide is written for UK visitors and covers Spain’s official currency, common payment methods, and tips to avoid extra charges abroad.

What currency does Spain use?

Spain uses the euro, abbreviated as EUR and symbolised by €. As a member of the Eurozone, the euro is the only legal tender used across mainland Spain and its islands—including the Balearic Islands (like Mallorca and Ibiza) and the Canary Islands (such as Tenerife and Gran Canaria).

All purchases, from meals and transport to hotel bookings and souvenirs, are made in euros.

How is the euro structured?

The euro is a decimal currency divided into 100 cents, similar to the UK’s pounds and pence. Denominations include:

• Banknotes: €5, €10, €20, €50, €100, €200 and €500

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

At the time of writing, £1 is worth around €1.15, but exchange rates vary daily—always check a trusted source before exchanging money.

Can you use British pounds in Spain?

No. Spain only accepts euros for purchases. British pounds are not accepted in shops, restaurants or transport. If you bring pounds with you, you’ll need to exchange them into euros at a local bank, currency exchange counter, or airport bureau—although airport rates are usually less favourable.

Should you bring cash or use a card in Spain?

Spain is a card-friendly country, particularly in cities and tourist areas. Visa and Mastercard are widely accepted, and contactless and mobile payments (Apple Pay, Google Pay) are increasingly common.

However, carrying a small amount of cash in euros is still useful—especially in rural areas, for tipping, or for use at markets and small local businesses.

UK travellers should consider using a fee-free travel card, such as Starling, Monzo or Revolut, to avoid foreign transaction fees and get better exchange rates when paying by card or withdrawing cash.

Tips for managing money in Spain

• Always pay in euros, not GBP, when offered the choice at card terminals

• Use ATMs linked to banks for more reliable service and lower fees

• Carry some cash for local transport, tips and small purchases

• Keep an eye on exchange rates if converting GBP to EUR

• Tipping is appreciated but not obligatory—rounding up the bill or leaving 5–10% in restaurants is common

Common mistakes to avoid

Some travellers use dynamic currency conversion at ATMs or card machines, allowing the bill to be charged in pounds. This typically results in a worse exchange rate—always choose to be charged in euros.

Also, avoid withdrawing large amounts of cash from standalone ATMs, especially those near tourist areas, as they may charge high fees.

In summary

Spain uses the euro (EUR) as its official currency. Card payments are widely accepted, but cash remains useful for small purchases, transport and tipping. UK travellers should carry a mix of euros and a travel card, avoid dynamic currency conversion, and pay in local currency for the best value.