The Canary Islands use the euro (€), not pounds — the same currency as mainland Spain and most of the EU. Cards are accepted almost everywhere and contactless is the norm, so you can happily run a whole holiday from your phone or a travel card, but it is still worth carrying a little cash for small bars, markets and tips. Here is everything a British or Irish visitor needs to know about spending money in the Canaries in 2026.
Euros, not pounds
Because the islands are part of Spain, the currency is the euro. Prices are shown in euros, staff quote in euros and your change comes in euros. You cannot pay in pounds sterling, and you should not need to change money into any other currency. Irish visitors, of course, are already in the euro at home, so there is nothing to swap at all.
One local quirk worth knowing: the Canaries sit outside the EU VAT area and instead charge a low local sales tax called IGIC, which is why some goods feel cheaper here. It does not change the currency — everything is still priced in euros — but it is part of why the islands are a bit of a bargain. More on that in our prices guide.
Cards and contactless: near-universal
Card payment is thoroughly established across the islands. Visa and Mastercard are accepted almost everywhere — hotels, restaurants, supermarkets, petrol stations, attractions and the vast majority of shops — and contactless (including Apple Pay and Google Pay) is standard, even for small amounts. American Express is less widely taken, so don't rely on it as your only card.
For most visitors a fee-free travel debit or credit card is the easiest way to pay. It gives you a fair exchange rate, a clear record of spending and none of the hassle of carrying lots of notes. We go into the best card setups, typical costs and daily budgets in our detailed guide to costs and money in the Canaries.
When you'll still want cash
Cash is no longer essential, but a modest amount smooths the trip. Keep some euros for:
- Small, traditional bars and cafés — especially local guachinches and village spots that may be cash-only or have a card minimum.
- Markets and street stalls — farmers' markets, craft stalls and the like often prefer notes and coins.
- Tips and small services — rounding up, tipping and the odd car-park attendant are easier with coins.
- Rural and remote areas — on the smaller islands and up in the hills, card acceptance thins out.
A rough rule: carry enough cash for a day's incidentals, and rely on cards for anything larger. If you are watching the pennies, our budget guide has plenty of ways to make your euros stretch further.
ATMs and fees
Cash machines (cajeros) are plentiful in resorts and towns. A few tips to keep withdrawals cheap:
- Use bank ATMs attached to a branch rather than the standalone machines in tourist strips, which often charge higher fees.
- Watch for on-screen fee warnings. Some machines add their own charge on top of anything your bank levies — you will be told before you confirm, so you can cancel and try another.
- Take out a sensible lump rather than lots of tiny withdrawals, since flat per-transaction fees add up.
- Check your own bank's overseas withdrawal charges before you travel; a fee-free travel account avoids them entirely.
The golden rule: always pay in euros
The single easiest way to lose money is dynamic currency conversion (DCC). When you pay by card or use an ATM, the machine may cheerfully offer to charge you "in pounds" instead of euros. It sounds convenient, but the exchange rate baked in is almost always poor — you lose several percent for nothing.
Whenever a card terminal or cash machine asks whether to charge in GBP or EUR, always choose euros. Let your own bank do the conversion at the real rate. "Pay in pounds" is a trap that costs you money on every single transaction.
Getting a good rate
You rarely need to buy euros in advance any more. A fee-free travel card gives you close to the interbank rate automatically; if you do want some cash in hand before you fly, compare rates and avoid airport bureaux, which offer the worst deals. Order online for collection or use a specialist travel-money card rather than changing pounds at the departure gate. Between a good card for day-to-day spending and a small cash float, you will get an excellent rate without thinking about it.
The bottom line
The Canary Islands run on the euro. Cards and contactless work virtually everywhere, so a fee-free travel card plus a little cash for small bars, markets and tips is the ideal combination. Take money out of bank ATMs, always choose to be charged in euros rather than pounds, and you will keep more of your holiday budget for the fun stuff. For the wider picture, see our guides to costs and money, typical prices and doing the Canaries on a budget.