The Spanish currency is the euro. Whether you're on the mainland or travelling to the islands, euros are the only currency you'll need.

Currency in the Canary Islands - Lanzarote, Tenerife, Gran Canaria and the other Canary Islands all use the euro, despite being located off the coast of Africa.

Currency for Ibiza - Ibiza and the other Balearic Islands (Majorca, Minorca, Formentera) also use the euro.

Most hotels, larger restaurants and shops accept card payments without any issues. That said, cash remains widely used – and in some situations it's essential:

As in the UK, it makes sense to use your card for hotels, larger restaurants and supermarkets, and keep some cash for day-to-day spending.

ATMs are widely available in cities and resorts and most accept UK bank cards. Some will offer to convert your withdrawal into pounds – this is called dynamic currency conversion, and it almost always gives you a worse rate. Always choose to be charged in euros and let your own bank handle the conversion.

Spain is generally more affordable than the UK for most everyday spending. Eating out, drinks, public transport and entrance fees are all considerably cheaper than at home.

That said, costs vary significantly. Barcelona and Madrid sit at the pricier end, while smaller cities like Seville, Granada and Bilbao offer better value. The Costa del Sol and the Balearic Islands can also get expensive in peak summer - so if you're travelling on a budget, shoulder season (May or October) is worth considering.

If you're hiring a car, fuel costs will always vary over time, but you'll find they're generally lower in Spain than in the UK and much of mainland Europe. To learn more, see our guide - Fuel costs in Europe.

Prices are always lower away from the main tourist areas. A cafe on a side street will cost noticeably less than one on a busy plaza terrace.

Here are some rough costs for UK travellers to cover food, drinks, local transport and activities – not including accommodation.

For a family of four on a mid-range budget, plan for around €220-€280 per day in spending money once accommodation is covered.

For adults on a week’s holiday with some flexibility built in, allow €650–€850 per person depending on how much you eat out and what activities you choose.

Food is one of Spain's greatest pleasures, and it offers remarkable value for money – especially if you eat where locals eat rather than in the main tourist areas.

Most local restaurants offer a set lunch menu that typically includes a starter, main course, dessert or coffee, and a drink, all for a fixed price. These are outstanding value and a staple for working Spaniards at lunchtime. As a rule of thumb, if you're paying more than €15 for a menú del día, you're either in a very touristy area or a particularly upmarket spot.

Tapas are another brilliant way to eat well without spending much. Individual portions typically cost €2-€4. In some cities, notably Granada, it's common to receive a free tapa when you buy a drink.

Wine and beer are very affordable. A small beer in a bar typically costs €1.50-€3, and supermarket wine starts from around €3-€5 a bottle. Spirits and cocktails cost more - a gin and tonic in a bar will typically set you back €8-€10.

Bonus tip: use our Multi-currency Cash Passport for all your spending. Using a travel money card can help you avoid foreign transaction fees that some bank cards may charge, which may help reduce overall spending while travelling.

Whether it’s a pint in Prague or patisserie in Paris, get a feel for how far your travel money might go by finding out more about foreign currencies.

Jetting off to Spain soon? Don’t forget to take out travel insurance before you go!

You can order your holiday money easily online with Tesco Travel Money. Or pick it up in-store with the weekly shop.

To learn more about taking cash abroad, take a look at our guide - Why you still need travel money abroad.

Exchange rates may vary during the day. Rates will vary whether you're buying in-store, online or over the phone. They'll also vary depending on whether you're buying cash or a prepaid currency card.

We buy back most currencies we sell in most banknote values. Excludes closed currencies.