Spain Madrid · EUR

How do people pay in Spain: cash, card or mobile?

Spain uses the euro (EUR). Card payments are accepted almost everywhere, from supermarkets to small bars, and contactless payment by card or phone is the norm for most purchases. Residents also use instant phone-to-phone bank transfers to split bills or pay small businesses, though visitors rarely need them.

Cash is still handy at market stalls, weekly street markets and some traditional bars. When a card terminal or cash machine offers to charge you in your home currency, choosing euros usually avoids a less favourable conversion rate.

Where do people in Spain buy groceries?

Spaniards shop at large supermarkets, neighbourhood supermarkets and discount chains, but in many cities covered municipal markets (mercados) remain important for fresh fish, meat, fruit and vegetables. Weekly street markets sell produce, clothing and household goods.

Small shops often close after lunch and reopen around five, while supermarkets usually stay open all day until about nine or ten in the evening. Sunday opening depends on the region: in some, such as the Madrid region, many shops open, while in others most stay closed. Bargaining is not usual in shops or food markets.

Is VAT included in prices in Spain?

Yes. Shelf prices in Spain include VAT (IVA). The standard rate is 21%, a reduced 10% rate covers many foods and restaurant meals, and a super-reduced 4% rate applies to basics such as bread, milk, eggs, fruit and vegetables. These food rates were cut temporarily during the recent inflation period, so check the current rules if you compare older receipts.

The Canary Islands use their own lower tax instead of IVA. Visitors from outside the EU can reclaim IVA on goods taken home by asking the shop for a tax-free form and validating it at customs on departure.

How have prices in Spain changed recently?

Spain was hit by the 2022 energy price shock like the rest of Europe, and food prices rose sharply in the years that followed, with olive oil, hit by drought, the best-known example. Inflation has eased since then, but grocery bills remain higher than before the episode. Tourism keeps prices in popular coastal and city areas above those in residential neighbourhoods and inland towns. Because prices and exchange rates keep moving, each price on this page shows the date we read it.