Currency of Spain for Expats: Euro Guide & Money Tips

Thinking of moving to Spain or already living the expat life? Understanding the currency of Spain is key to managing your finances smoothly. The euro (€) is Spain’s official currency, and whether you’re withdrawing cash, exchanging money, or setting up a local bank account, knowing the ins and outs will save you time and money.

In this guide, we’ll cover everything expats need to know about Spain’s currency so you can spend less on banking and more on enjoying life in Spain.

Currency in Spain is the EURO €

The euro is the currency of Spain since it’s introduction on January 1, 2002, replacing Spain’s former currency, the peseta, along with other national currencies like the French franc and German mark. Today, the euro is used by 19 of the 27 EU member states. This means it is one of the world’s most widely recognized and traded currencies.

The euro is known for its stability, with a low inflation rate and strong market presence. In fact, it’s the second most traded currency globally, right after the US dollar. For travelers and businesses alike, it offers seamless transactions across the eurozone. In other words, no need to worry about exchange rates when hopping from Madrid to Paris or Rome.

Euro banknotes are designed for easy recognition. Each denomination varies in size, with the smallest being €5 and the largest in circulation at €200. Their bold, distinct colors make them instantly recognizable. The €500 note, once notorious for its rarity, was officially phased out in 2018.

Characteristics of the Euro

Each euro is composed of 100 cents and is available in both coins and banknotes. When you’re planning your trip, it’s important to check the current exchange rate between your home currency and the euro to get an idea of how much money you’ll need.

Banknotes in Spain

Euro banknotes come in 5, 10, 20, 50, 100, 200, and 500 euro denominations. Although the 200 and 500 EUR notes are not widely used, they do exist. The most used banknotes are the 5, 10, 20, and 50 EUR denominations.

Coins in Spain

There are eight different coins euro coins which are 1 cent, 2 cents, 5 cents, 10 cents, 20 cents, 50 cents, 1 euro, and 2 euros.

Exchanging for EUR

There are several options for exchanging currency in Spain, including banks, exchange offices, and ATMs. It’s important to compare the exchange rates and fees before making any transactions. While banks may offer better rates, they may also charge higher fees. Exchange offices may offer better rates for cash transactions, but they may also charge commissions.

When you want to exchange currencies into the euro, look for the currency code EUR. Usually, the safest place for exchanging is an ATM machine (known in Spain as a “cajero automático“). ATMs are widely available, not just at bank branches but also in shopping centers, commercial districts, major cities, and even historic town centers.

Exchange rate

Of course, money exchange rates fluctuate daily. Therefore, to get an accurate exchange rate we recommend using Google. Notice that when exchanging currency at an exchange service there may be some additional charges. However, these shouldn’t be more than 3%.

Using ATMs

Using ATMs is one of the most convenient ways to get euros while in Spain. However, it’s important to check with your bank before you leave to ensure that your card will work in Spain. Some banks charge fees for international transactions, so remember to check these fees and compare them to other options before making any withdrawals.

Cash vs. Card

Credit cards are widely accepted in Spain, especially in major cities and tourist areas. Visa and Mastercard are the most commonly accepted cards, but American Express is also accepted in some places. Always check with your credit card company to see if they charge foreign transaction fees and what those fees are.

However, it’s also a good idea to have some cash on hand, especially for smaller purchases or in areas where credit card usage may be limited. Keep in mind that some places, such as markets or small shops, may only accept cash.

When should I use cash in Spain?

Credit and debit cards are commonly used in Spain. However, in small towns often cash is the only option. These towns may also not have a local ATM, so it is best to withdraw cash before you get there.

Next to this, smaller restaurants in the big cities sometimes also require you to pay with cash. In this case, they may not have a card system (similar to the towns) or a minimal fee of (5 to 10 euros) to spend if you want to use the card system. In this way, it’s always a good idea to have some cash on hand when traveling in Spain.

What is a currency transfer service?

A currency transfer service is a financial service that allows individuals and businesses to exchange and send money between different currencies (often internationally) at competitive exchange rates.

Unlike traditional banks, which may charge higher fees and offer less favorable exchange rates, specialized currency transfer providers focus on cost-effective, fast, and secure international transfers. These services are commonly used by expats, international businesses, and investors to move money across borders efficiently.

When to use a currency transfer service as an expat in Spain

Managing international money transfers efficiently is crucial for expats living in Spain. Whether you’re buying property, receiving a pension, or covering everyday expenses, using a currency transfer service can help you get the best exchange rates and avoid unnecessary fees.

• Large Transfers

If you’re moving a significant amount, such as transferring savings or purchasing a home, a dedicated currency provider can offer better exchange rates and lower fees compared to banks. Some even provide personalized guidance to help you time your transfer for the best rate.

• Regular Payments

If you receive a pension from abroad or need to send money for recurring expenses, setting up automated transfers ensures you get a consistent rate and avoid delays.

• On-Demand Transfers

Need to send money quickly? Many providers offer 24/7 online or mobile app transfers for amounts up to £50,000 (or the equivalent in your currency), giving you flexibility and control over your funds.

History of the Spanish euro currency

Spain’s currency has evolved significantly over the centuries. The first coins in the region date back to the Roman Empire, but modern Spanish currency began with the peseta, introduced in 1869. For over a century, the peseta remained Spain’s official currency, with 1 peseta divided into 100 céntimos. That changed in 2002, when Spain joined most of the European Union in adopting the euro (€). The transition was set at an exchange rate of 1 euro = 166.386 pesetas, marking a new era of economic integration.

Today, Spain’s euro coins reflect its rich history and culture. The 1 and 2 Euro coins feature King Felipe VI, who ascended the throne in2014 and is known for his philanthropic efforts and international diplomacy. The 10, 20, and 50 cent coins honor Miguel de Cervantes, the legendary author of Don Quixote, a cornerstone of Western literature. Meanwhile, the 1, 2, and 5 cent coins showcase the Cathedral of Santiago de Compostela, a UNESCO World Heritage site and the final stop on the iconic Camino de Santiago pilgrimage.

Positive effects of the euro currency in Spain

There are many positive aspects to the euro. It’s easier for travelers coming from the European Union because there’s no need to exchange money. Next to this, the euro has a more stable value than the peseta. The euro is also used in other countries, so Spanish businesses can easily export their products abroad.

Negative effects of the euro currency in Spain

Although there are many positive aspects to the euro, there are also negative ones. The biggest gripe Spanish people have about the euro is that prices have risen in most stores since 2002 when it became the official currency. Gasoline, clothing, hotels, and even public transportation costs are some of the most common examples.

A word from SublimeSpain

Managing your money while traveling can be stressful, but with a little bit of planning, it can be a breeze. By understanding the euro, comparing currency exchange options, and knowing your payment options, you’ll be able to enjoy your trip to Spain without any financial worries.

Disclaimer: Information on this page may be incomplete or outdated. Under no circumstances should the information listed be considered professional legal or financial advice. We highly recommend seeking guidance from a legal or financial expert if you lack extensive knowledge or experience dealing with any of the procedures outlined in these articles.