Money matters when visiting Lanzarote

In this blog post we aim to address a few of the most frequently asked questions when it comes to managing your money on holiday in Lanzarote.

We get asked a lot of questions when it comes to money. How much do you need? Can you use your British Debit Card instead of Cash? Can you exchange money on the island and get a better rate? Understandably, for people coming to Lanzarote for the first time it can be a little daunting as you don't want to be thousands of miles away from home and run into financial difficulties.

Here are some of the most frequently asked questions concerning money in Lanzarote.

How much money do I need to bring with me for my holiday?

This really depends on how you want to spend your holiday. Do you plan on eating our every night, booking Lanzarote trips and excursions around the island, visit Fuerteventura, seeing shows in the evening? Is your accommodation self catering or half board / all inclusive? The best thing to do is make a plan of all the things you intend on doing before your visit and give yourself a daily budget, with a bit of flexibility and contingency included.

I recently paid with my UK Debit card and was asked if I wanted to pay in Euros or Pounds. What is the best option?

If you pay for something with your debit card here in Lanzarote, and the cashier asks if you want to pay in Euros or Pounds then you should always opt to pay in the local currency, Euros. Why? The choice of currency here also determines who decides on the conversion rate. If you pay in Euros, then the conversion is done by your bank or credit card company. If you opt to pay in Pounds you're in the hands of the bank of the local retailer, which could add a hefty amount onto the value of the transaction. So remember, always pay in Euros.

Do shops and restaurants accept cash?

Believe it or not, this is one of the most frequently asked questions on social media. No shop or restaurant will ever turn down payment in cash (unless maybe you're paying a €500 bill in 1 cent coins!). Cash is fine and remains a legal way to pay for goods and services in Lanzarote.

Can I exchange money on the island?

Yes! You can exchange your non euro currency for Euros in quite a few establishments on the island. Our only advice is be careful where you change it and make sure you're getting the advertised rate when your money is changed. Don't forget you can also withdraw cash from ATM machines from your non-spanish bank. There may be a charge for doing this, but this is advertised on screen before the withdrawal takes place

What's the best way to avoid charges and conversion rates when using your debit card?

If you haven't already got one, then consider using a borderless account such as Wise (formally Transferwise) . They offer much better rates when it comes to cash machine withdrawals and transactions, although some new UK banks, such as Chase, claim to have no fees for using their card outside the UK.

Should I tip in Lanzarote, and what is the going rate?

If you've enjoy good service from your water, bartender or taxi driver, it's normal to leave a tip as a token of appreciation. The wages of employees here on the island isn't amazing, so tips are a great way for them to earn a better living. A good tip would be around 10% of the total cost of the bill.

Should I take cash with me before I visit?

Gone are the days of exchanging hundreds of pounds for Euros before you visit. We'd probably recommend changing a little before you travel, so that you have a bit to spend on the plane or once you get to Lanzarote, but it's very easy to access your money at home with the ATM Machines on the island. As we've mentioned previously, it's also an idea to get a borderless bank account such as Wise, where you can store your holiday funds and use their card to make free withdrawals and lower the cost of your conversion rates

Please note that the above information is provided as guidance only, in response to questions we are regularly asked. This is not financial advice!