Currency, Money & Tipping in Tenerife

As part of Spain, Tenerife uses the euro (€), even though the Canary Islands sit outside the EU's standard VAT area and have their own lower local tax (IGIC, generally 7% rather than mainland Spain's 21% VAT) — one reason prices for some goods, especially electronics and alcohol, tend to be lower here than mainland Europe.

• ✓Cards are accepted almost everywhere, including most small local restaurants and shops — but carry some cash for markets, small kiosks and tips.
• ✓ATMs are widely available in every resort town; withdrawing from your home bank's app-linked network usually beats airport currency exchange rates.
• ✓Tipping is appreciated, not obligatory: rounding up or leaving 5–10% at restaurants for good service is normal; taxi drivers and hotel staff are usually tipped a euro or two rather than a percentage.
• ✓Many restaurants add a small "pan y cubierto" (bread and cover) charge automatically — this is normal practice in Spain, not a mistake on the bill.