Can I use Gibraltar pounds in Spain?

Short answer

Generally no. Spain uses the euro, Gibraltar pound notes are not an official currency outside Gibraltar, and banks and exchange offices elsewhere often refuse them, so spend or exchange any Gibraltar notes before you cross the border.

Detailed answer

Gibraltar pound notes and coins are issued by the Government of Gibraltar and are at par with sterling. Inside Gibraltar, Bank of England notes and UK coins circulate freely and are interchangeable with Gibraltar issues.

Once you cross into Spain, prices are in euros. Some local businesses in La Línea de la Concepción, next to the frontier, are reported to accept Gibraltar pounds informally, but this is at their discretion and you should not rely on it. Banks and currency exchange offices in Spain and further afield often decline Gibraltar notes, and UK banks are not obliged to exchange them either.

Practical steps if you are heading into Spain:

• When paying in Gibraltar, ask for your change in Bank of England notes where possible, since these are easier to use or exchange outside Gibraltar.
• Pay by card for larger purchases to avoid building up Gibraltar cash.
• Spend any remaining Gibraltar notes and coins before you leave, or exchange them in Gibraltar.
• If you return home with Gibraltar notes, specialist currency buyers will take them, usually at less than face value.

If you are staying on the Spanish side and visiting Gibraltar for the day, withdrawing only what you need, or paying by card, avoids the problem altogether.