Spain Money & Currency Guide: Euro, Payment & Exchange

Spain uses the euro as its official currency, adopted on January 1, 2002 as part of the European Monetary Union. The euro replaced the peseta at a fixed conversion rate of 166.386 pesetas to one euro. Euro banknotes come in denominations of 5, 10, 20, 50, 100, 200, and 500 euros, though the 500-euro note was discontinued for new production in 2019 and remains rarely seen in circulation. Coins are minted in 1, 2, 5, 10, 20, and 50 cent pieces, plus 1 and 2 euro coins. Spanish euro coins feature designs including Miguel de Cervantes on the 10, 20, and 50 cent pieces, the Cathedral of Santiago de Compostela on the 1, 2, and 5 cent pieces, and King Felipe VI on the 1 and 2 euro coins following his accession in 2014, replacing the image of his father Juan Carlos I that appeared from 2002 to 2014.

The Banco de España, established in 1782 and nationalized in 1962, serves as the country's central bank and forms part of the European System of Central Banks. The bank maintains its headquarters in Madrid on Calle de Alcalá and operates regional branches in Barcelona, Bilbao, Sevilla, Valencia, Alicante, A Coruña, Málaga, and other provincial capitals. While monetary policy is set by the European Central Bank in Frankfurt, the Banco de España oversees domestic banking supervision, currency circulation, and payment systems across Spanish territory including the Balearic Islands and Canary Islands.

ATMs, known locally as cajeros automáticos, operate throughout urban and rural areas with saturation density in cities including Madrid, Barcelona, Valencia, and Sevilla. Most ATMs accept cards bearing Visa, Mastercard, Maestro, and Cirrus logos. Withdrawal limits typically range from 200 to 600 euros per transaction depending on the issuing bank, with most Spanish banks setting daily limits between 600 and 1,500 euros for domestic cardholders. Foreign transaction fees vary by issuing bank but commonly fall between 1 and 3 percent of the withdrawal amount, with some banks adding fixed fees of 2 to 5 euros per transaction. ATMs in tourist-dense zones including the Costa del Sol, Costa Brava, and central Barcelona frequently offer dynamic currency conversion, a service that converts the withdrawal to the cardholder's home currency at an unfavorable exchange rate; declining this option and accepting the charge in euros typically results in better conversion rates applied by the card-issuing bank.

Credit and debit cards are accepted at most establishments in Madrid, Barcelona, Valencia, Bilbao, and other major cities. Acceptance drops in rural areas across Galicia, Asturias, and inland Castile, where cash remains the primary transaction method especially in villages with populations below 5,000. Contactless payment has become standard in urban areas since 2018, with most terminals accepting transactions up to 50 euros without PIN entry, a limit raised from 20 euros in 2020. American Express acceptance is significantly lower than Visa or Mastercard, particularly outside major hotel chains and department stores. Many restaurants, particularly family-run establishments and those outside tourist circuits, operate on cash-only basis or impose minimum card transaction amounts of 10 to 20 euros.

Spanish banking hours traditionally run from 8:30 to 14:00 Monday through Friday, though many urban branches have extended hours to 16:30 or 17:00 and some open on Saturday mornings. August closures remain common as many branches operate on reduced schedules during the traditional vacation period. Major Spanish banks include Banco Santander, founded in 1857 and now one of the eurozone's largest banks by market capitalization; BBVA, formed through the 1999 merger of Banco Bilbao Vizcaya and Argentaria; CaixaBank, the trading name of Criteria CaixaCorp following its 2011 reorganization; and Banco Sabadell, established in 1881. Opening a bank account as a non-resident requires a NIE number, passport, proof of address either in Spain or country of residence, and typically an initial deposit ranging from zero to 600 euros depending on account type.

Tipping practices in Spain differ substantially from North American norms. Restaurant service charges are included in menu prices by law, and tipping is discretionary rather than expected. Leaving small change from the bill or rounding up on amounts under 20 euros is common; on larger bills, tips of 5 to 10 percent signal exceptional service rather than standard practice. In bars and cafés, many locals leave small coins amounting to 50 cents to 1 euro after drinks or tapas. Taxi drivers do not expect tips though rounding up to the nearest euro or adding 1 to 2 euros for airport trips is practiced. Hotel porters typically receive 1 to 2 euros per bag. Tour guides on organized excursions generally receive 5 to 10 euros per person for full-day tours.

Currency exchange services, known as casas de cambio, operate in major tourist areas including central Madrid, Barcelona's Las Ramblas, coastal resorts along the Costa del Sol, and airports including Madrid-Barajas Adolfo Suárez and Barcelona-El Prat. Exchange rates at these services are typically 3 to 8 percent less favorable than ATM withdrawal rates, with airport exchange booths offering the least favorable rates. Commission fees vary from zero percent with unfavorable exchange rates to 5 to 10 percent with rates closer to interbank levels. Banks generally offer better exchange rates than dedicated exchange services but often charge flat fees of 3 to 6 euros per transaction and require account holders to complete exchanges, making them impractical for most visitors.

Value-added tax in Spain, known as IVA from Impuesto sobre el Valor Añadido, applies at three rates: 21 percent standard rate on most goods and services, 10 percent reduced rate on food items, restaurant meals, hotels, and passenger transport, and 4 percent super-reduced rate on basic necessities including bread, milk, eggs, fruits, vegetables, books, and newspapers. Non-European Union residents can claim VAT refunds on purchases exceeding 90.16 euros from a single retailer on a single day, provided goods are exported from the EU within three months. The refund process requires obtaining a tax-free form from the retailer, having purchases and the form validated by customs officers at the departure point—typically at airport customs desks before check-in—and submitting the validated form to refund processing companies including Global Blue, Premier Tax Free, or Innova Tax Free. Refunds are processed as credit card credits, bank transfers, or cash at airport refund desks, with processing companies retaining service fees typically between 20 and 40 percent of the refundable tax amount.

Costs vary substantially by region and season. Accommodation in Madrid and Barcelona during peak season from May to September and around major festivals including Semana Santa runs substantially higher than shoulder periods. A midrange double room in central Madrid or Barcelona costs 80 to 150 euros per night in low season and 120 to 250 euros during peak months. Cities including Valencia, Sevilla, and Bilbao typically charge 60 to 120 euros for comparable midrange accommodation. Rural areas including inland Castile, Extremadura, and Galicia offer accommodation from 40 to 80 euros per night. Meal costs follow similar regional patterns: a menú del día, the fixed-price lunch menu typically including starter, main, dessert, bread, and drink, costs 10 to 15 euros in most cities and 8 to 12 euros in smaller towns and rural areas. Dinner at midrange restaurants in Madrid or Barcelona runs 20 to 35 euros per person before drinks; in Sevilla, Granada, or Valencia, comparable meals cost 15 to 28 euros. Wine by the glass costs 2 to 4 euros in local bars, 4 to 8 euros in midrange restaurants, and 8 to 15 euros in upscale establishments. A caña, the standard small draft beer, costs 1.50 to 3 euros in most bars outside premium tourist zones.

Public transport in Madrid operates on a zone system with single metro tickets at 1.50 to 2 euros depending on zone, while a 10-trip ticket costs 12.20 euros for zone A covering central Madrid. Barcelona's metro charges 2.40 euros for a single journey and 11.35 euros for a T-10 ticket valid for 10 journeys across metro, bus, and tram within zone 1. High-speed AVE trains connecting Madrid to Barcelona cover the distance in approximately 2 hours 30 minutes with advance-purchase tickets starting around 30 euros and full-fare tickets ranging from 80 to 140 euros depending on class and time. Madrid to Sevilla on AVE takes approximately 2 hours 20 minutes with similar pricing structures. Regional trains and buses offer substantially lower fares: Madrid to Toledo by regional train costs approximately 10 to 14 euros each way; buses between cities typically run 30 to 60 percent below train fares on equivalent routes.

Museum admission varies by institution and visitor category. The Museo del Prado in Madrid charges 15 euros for general admission with free entry during the final two hours of each day, currently 18:00 to 20:00 Monday through Saturday and 17:00 to 19:00 on Sundays and holidays. The Reina Sofía, also in Madrid, charges 10 euros with free admission Monday and Wednesday through Saturday from 19:00 to 21:00, and Sunday from 12:30 to 14:30. The Alhambra in Granada charges 14 euros for general daytime admission to the full complex including Nasrid Palaces, Generalife gardens, and Alcazaba fortress, with night visits priced at 8 euros for access to either Nasrid Palaces or gardens. Advance booking is effectively mandatory for the Alhambra as daily visitor numbers are capped at approximately 6,000 and same-day tickets are rarely available during March through October. The Sagrada Familia in Barcelona charges 26 euros for basic admission and 36 euros for admission with tower access.

Markets including Madrid's Mercado de San Miguel, Barcelona's Mercat de la Boqueria, and Sevilla's Mercado de Triana operate as both functional food markets and tourist attractions. Prices for produce, cheese, cured meats, and prepared foods at these markets typically run 20 to 50 percent higher than neighborhood markets and supermarkets due to tourist traffic and central locations. Supermarket chains including Mercadona, Carrefour, Dia, and Lidl operate throughout urban and suburban areas with prices substantially below tourist-zone markets and convenience stores. A liter of milk costs approximately 0.80 to 1.20 euros, a dozen eggs 1.50 to 2.50 euros, a kilogram of chicken breast 5 to 7 euros, and a bottle of acceptable table wine 3 to 6 euros at major supermarket chains.

Mobile phone service operates on GSM 900/1800 and UMTS 2100 MHz bands with widespread 4G LTE coverage in urban areas and 5G deployment ongoing in Madrid, Barcelona, Valencia, and other major cities since 2020. Major carriers include Movistar, Vodafone, Orange, and Yoigo. EU regulations eliminated roaming charges for EU residents using phones within EU member states in 2017, but non-EU visitors pay roaming rates set by their home carriers or can purchase Spanish prepaid SIM cards. Prepaid SIM cards from Spanish carriers cost 10 to 20 euros including initial credit and require passport presentation for activation under Spanish telecommunications law. Tourist SIM packages offering 5 to 15 GB of data plus domestic calling cost 15 to 30 euros for 28-day validity.