Money, Payments and Tipping in Madrid: Cards, Cash, Tax-Free Shopping

The euro and ways to pay

Spain uses the euro. Travellers from the eurozone therefore have no currency to exchange and pay with their usual card at no extra cost. For everyone else, a bank card with no foreign transaction fees beats a bureau de change: the counters at the airport and in tourist streets apply poor rates.

Visa and Mastercard are accepted almost everywhere; American Express less often, especially in small shops. Contactless payment, by card, phone or watch, has become the norm, even for small amounts such as a coffee or a caña. For larger purchases the terminal may ask for your PIN, and photo ID is sometimes requested with a foreign card: keep some on you.

Paying for public transport and taxis by card

• Metro: since 1 June 2026, a single ticket can be paid directly at the turnstile with a contactless bank card or a phone, in every station. 10-trip tickets and the abono turístico are still loaded onto the rechargeable transport card, at the ticket machines in stations, which accept bank cards.
• EMT buses: the €1.50 single ticket is paid on board by contactless card (Visa, Mastercard, American Express).
• Taxis: all Madrid taxis accept bank cards as well as cash. The flat fare between the airport and anywhere inside the M-30 ring road is €33, with no supplements.

Tickets and fares are detailed in our guide to public transport in Madrid.

ATMs: fees and the conversion trap

ATMs (cajeros) are plentiful in the centre. Most Spanish banks charge foreign cards a withdrawal fee, on top of any fees from your own bank. The amount of this fee is shown on screen before you confirm: if it seems high, cancel and try an ATM from another bank. Independent ATMs installed in very touristy streets and souvenir shops are often the most expensive.

Always choose euros

At the ATM as at the card terminal, you will often be offered to pay "in your currency" (dynamic currency conversion, or DCC). The answer is almost always no: the rate applied by the merchant's bank includes a margin well above your own bank's. Always choose euros, and also decline the "guaranteed conversion" offered by some ATMs. If a waiter or shop assistant selects the foreign currency themselves, ask for the transaction to be cancelled.

Other money-related traps, from fake ticket inspectors to inflated bills, are covered in our article on scams to avoid in Madrid.

Cash: how much to carry

A few tens of euros in small notes are enough for a trip. They are mostly useful for small sums in traditional bars, for tips, at markets and at the stalls of the Rastro on Sundays, where some vendors do not take cards. €200 and €500 notes are often refused, and even a €50 note can be a problem for a coffee.

Spanish law limits cash payments to a business to less than €1,000 per transaction. For a private individual who can prove tax residence outside Spain, the limit is €10,000. When entering or leaving the European Union, any amount of cash of €10,000 or more must be declared to customs.

Tipping in Madrid: what people really do

In Spain, service is included in the displayed prices, and a tip (propina) is never compulsory. Madrid locals leave little: it is a gesture of thanks, not an expected part of the wage as in the United States. A few guidelines:

• At the bar: for a coffee or a few cañas at the counter, people leave their small change or round up, sometimes nothing at all.
• At a restaurant: for a menú del día, a few coins or rounding up to the next euro is enough. For an à la carte dinner, 5 to 10% of the bill is a generous gesture if the service was good.
• In a taxi: round the fare up to the next euro, especially if the driver helps with your luggage. Nothing is expected on the airport flat fare.
• Guided tours: on so-called "free" tours, paid through tips, the guide counts on a contribution from each participant; on a paid tour, a tip remains optional.
• Hotel: a few euros for the housekeeping staff or the porter, if you wish.

If you pay by card, the terminal does not usually offer to add a tip: leave a few coins on the table or in the saucer. Always check the bill: bread or olives you did not order may be charged, and you can refuse them when they arrive.

Summary of customs

Prices and customs noted in October 2026.

Tax-free shopping: getting the VAT back as a non-EU resident

Spanish VAT (IVA) is 21% on most purchases. If your usual residence is outside the European Union, you can get it refunded on your personal purchases, subject to several conditions set by the Spanish Tax Agency:

• No minimum purchase amount has been required since 2018.
• Leave the EU within three months of the purchase, taking the goods with you.
• Ask for the electronic refund form (DER) at the time of purchase, showing your passport. Shops affiliated with a tax-free service display it in the window.
• Validate the form when you leave with the DIVA system, at the kiosks in the airport, before checking in your luggage. A green light means the validation has been accepted; if the light is red, go to the customs office with the goods.

The refund is then paid by the shop or by the tax-free company, which keeps a commission: you will therefore not get the full 21% back. The big chains and the luxury boutiques of the Salamanca district, around calle de Serrano, are the most used to the procedure. If you leave the EU from another country, validation takes place at that country's exit border.

No tourist tax

Unlike Barcelona and many European cities, Madrid does not charge a tourist tax. The city council once again ruled the idea out in July 2026, and the Community of Madrid does not levy one either: the price shown by your hotel is therefore the final price, apart from any service fees charged by booking platforms.

Further reading

To estimate your spending day by day, see our guide to the budget for a trip to Madrid. Sights that cost nothing are gathered in free things to do in Madrid, and our guide to where to stay in Madrid helps you choose a neighbourhood that suits your budget.