Lanzarote Money Tips

Here on Lanzarote, we use the euro, which makes things nice and simple for most visitors. Over the years, I have found that a little local know-how goes a long way when it comes to making your money stretch further. 

If you are aware of a few basics about card payments, exchange rates and some of the usual tourist pitfalls, you can relax and enjoy your holiday without worrying about unnecessary costs.

If there is one money tip I always share with friends visiting Lanzarote from the UK, it is this: when you pay by card, you will often be asked whether you want to pay in euros or pounds. It is best to choose euros every time. Paying in pounds means the shop or restaurant decides the exchange rate, and it is nearly always less favourable than what your own bank would give you. 

The same goes for cash machines – always select euros and let your bank handle the conversion. It is a simple step that can save you a surprising amount over the course of your holiday.

You will find that card payments are welcome just about everywhere here in Lanzarote, from restaurants and supermarkets to petrol stations, excursion companies and even most beach bars and market stalls. Visa and Mastercard are widely accepted, while Amex and Discover are a little harder to use. 

Contactless payments work smoothly up to the usual EU limit. It is always handy to have a little cash on you, perhaps 50 to 100 euros, for small purchases, tips, car park machines or the odd market stall that prefers coins. But for the most part, you can get by very comfortably with just your card.

IGIC, or Impuesto General Indirecto Canario, is our local version of sales tax here in the Canary Islands. It works much like VAT on the mainland, but the rate is usually a bit lower. Here in Lanzarote, you’ll find that IGIC is included in the prices you see on menus and in shops, so there are no hidden extras to worry about when you get the bill. The price you see is the price you pay.

That said, it’s always a good idea to glance at the menu or ask if IGIC is included, especially in smaller places or busy tourist areas. Most places do things properly, but checking saves any little surprises when the bill comes. It’s just one of those small things that helps you relax and enjoy your time here on the island.

You will find ATMs, or cajeros automáticos as we call them here, in all the main resorts, in Arrecife, and in most of the larger villages. Nearly all of them accept international cards, so getting cash is usually straightforward. Some machines do charge a small fee of one or two euros, while others are free, so it is always worth checking the screen before you go ahead. I usually suggest taking out a bit more at once to keep those fees to a minimum. 

One thing to watch out for: the blue and yellow Euronet machines that have popped up in tourist spots tend to offer poor exchange rates and higher charges, so I recommend sticking to the bank ATMs whenever you can.

If you need to change money while you are here, you will usually find the best rates by using your debit card at a local ATM. The airport and resort exchange desks are handy, but their rates tend to be less favourable. If you do decide to use a bureau de change, it is always worth comparing rates and checking for any commission charges. Some places advertise no commission, but often make up for it with a less attractive exchange rate. 

Many visitors also find it convenient to order euros from their UK bank before travelling, especially if you arrange it online ahead of time.

Tipping here in Spain is a relaxed affair, and there is certainly no set percentage as you might find in the US. That said, a little extra for good service is always welcomed. In restaurants, most locals simply round up the bill, and leaving five to ten percent is considered generous. 

At the bar, it is quite normal to leave a few coins with your change. For taxi drivers, rounding up to the nearest euro is the usual way. If you would like to leave something for hotel housekeeping, a euro or two each day is a thoughtful gesture, though by no means expected. Tour guides and excursion staff are always grateful for a tip, especially if you have enjoyed a private tour.

Over the years, I have found that the easiest way to manage spending here is with a travel-friendly bank card that does not charge foreign transaction fees. 

Many visitors from the UK use cards like Starling, Monzo, Revolut or Chase, and they work smoothly for both card payments and cash withdrawals across Lanzarote. If you are bringing a card from a traditional high-street bank, it is worth checking the fees before you travel, as these can add a little extra to each purchase and soon mount up over the course of your holiday.