Spain Local Currency

Local Currency

Spain's official currency is the Euro (EUR). One Euro is divided into 100 cents. Money can be exchanged at bureaux de change and major hotels, but banks will usually give the best rates. Currency exchange offices require little identification and completing of forms making the process quick and hassle free, whereas at a bank you will be required to show proof of identification and fill in some forms.

Credit cards are well accepted whether at a market stall, gas station or in small towns. Most ATMs will allow you to withdraw money with your credit card, provided you know your card's PIN. Most stores will ask for ID before accepting your credit card, at some you will need to show your passport. There are costs involved, usually a charge of around 1.5% to 2% on ATM cash withdrawals abroad. Travellers cheques usually bring only a slightly better exchange rate than cash, but have the advantage of protecting your money because they can be replaced if lost or stolen.

The local version of Value-added tax (VAT) or GST is known as IVA. On accommodation and restaurant prices it is 7% and is usually included in quoted prices. On retail goods and care hire the IVA is higher at 16%. Visitors are entitled to a refund of the 16% IVA on purchases costing more than 90 Euros or 16 if they are taking them out of the EU within three months. Ask for a refund form from the shop then present at the airport, port or border from which you leave the EU for reimbursement.