UK holidaymakers heading to Spain this year are being urged to review their travel money plans after a wave of reports reveals that certain euro banknotes are no longer being accepted in popular Spanish destinations. In particular, high-denomination notes—namely the €500 and, in some cases, the €200—are being refused by a growing number of shops, restaurants, and transport providers.
While these notes remain legal tender across the Eurozone, many businesses in Spain are choosing not to accept them, citing fears of counterfeiting, practicality concerns, and stricter financial regulations. The situation has left many unsuspecting British tourists scrambling at tills, confused and frustrated after being told their money is “not valid.”
This trend is becoming especially problematic in high-footfall tourist areas such as the Costa del Sol, Barcelona, Ibiza, and parts of mainland cities like Madrid and Seville—places frequented by millions of British travelers every year.
So, what exactly is going on? Why are these euro notes being snubbed? And how can you avoid getting caught out on your next trip?
Which Euro Notes Are Being Rejected?
€500 and €200 Notes Under Scrutiny
The primary notes causing issues are the €500 and €200 bills—both high-value denominations that are rarely used in everyday transactions. While they technically remain legal tender, that doesn’t mean businesses are obligated to accept them, especially if they consider them a risk or inconvenience.
The €500 note, in particular, has long carried a shady reputation. Nicknamed “the Bin Laden” note because of its popularity in the black market, it was officially withdrawn from circulation by the European Central Bank in 2019. However, it has not been demonetized, meaning it still retains value and can be used—at least, in theory.
In practice, though, the note is all but extinct in most retail environments. Even many banks are wary of handling them, and the average café or convenience store will refuse to touch them altogether.
The €200 note, while not officially withdrawn, is also avoided in many places due to similar concerns.
Still Legal Tender but Rarely Accepted
To clarify, both the €500 and €200 notes are still valid currency. That means you won’t be breaking any laws by possessing them, and you can technically use them for large purchases or bank transactions. But the key word is “technically.”
The reality is far more complex. Most businesses—especially smaller vendors and tourist-facing outlets—don’t have the cash reserves to provide change for such large bills. They also don’t want the added hassle of verifying high-value notes that could potentially be counterfeit.
This disconnect between legality and usability is at the heart of the issue for tourists who are unknowingly caught in the middle.
Why Are High-Denomination Notes Being Refused?
Link to Counterfeiting and Money Laundering
One of the biggest reasons for refusing these large notes is their association with criminal activity. €500 notes, in particular, have been widely used in money laundering, tax evasion, and illicit trade because of how easy it is to carry large amounts of cash with minimal bulk.
Authorities across Europe have raised concerns about this for years. The European Central Bank decided to halt production of the €500 note in 2019 after numerous calls from police and financial oversight bodies. It was considered a major step in combating crime, even though existing notes were allowed to remain in circulation.
Now, businesses are increasingly taking matters into their own hands. If there’s even a small risk that a note is fake—or tied to shady dealings—many prefer to avoid accepting it altogether.
Practicality and Change Issues for Businesses
Besides the legal and ethical considerations, there’s also a very practical reason for refusing high-denomination bills: making change. Most small businesses, food vendors, taxis, and souvenir shops simply don’t carry enough cash to break a €500 note, especially if the purchase is only €10 or €20.
Imagine trying to buy an ice cream on the beachfront with the equivalent of nearly £430. It’s not just impractical—it’s almost guaranteed to be rejected.
Even the €200 note, worth approximately £170, presents similar problems. For most transactions, it’s just too big to handle without disrupting daily cash flow or risking shortfalls.
What This Means for UK Tourists
Potential Travel Hassles and Payment Rejections
For UK tourists, the most immediate concern is being turned away at the checkout. Whether you’re paying for dinner, trying to book an excursion, or just grabbing a bottle of water, presenting a €500 or €200 note could leave you empty-handed.
There have been numerous social media reports of travelers being told their money was “no longer accepted” or treated as suspicious—even though they obtained the currency from reputable sources back in the UK.
The problem is especially frustrating when tourists receive these high-value notes from currency exchange offices without being warned of their limited usability abroad.
Importance of Using Smaller Denominations
To avoid awkward or stressful situations, it’s strongly recommended that UK travelers only carry €5, €10, €20, and €50 notes while in Spain. These denominations are widely accepted and won’t raise eyebrows.
It’s also wise to request smaller bills when exchanging money in the UK or at Spanish airports. Most reputable bureaux de change will accommodate this request if asked.
Tourists should also be cautious when withdrawing large amounts of cash from ATMs, as some may dispense €100 or €200 notes depending on the machine.
