Currency in the Eurozone
A practical currency and money guide to travel, living and doing business in the Eurozone and the Euro (EUR).
What's in this Eurozone currency guide:
What currency is used in the Eurozone?
The official currency of the Eurozone (country code: EU) is the euro, with symbol € and currency code EUR.
Things to know about the euro
The euro (ISO: EUR) is involved in slightly more than 30% of all foreign exchange deals, and as such, is the world’s second most traded currency, behind the US dollar.
The euro is the currency of the eurozone (officially called the ‘euro area’), which consists of 19 of the 28 member states of the European Union, and is used by almost 350 million Europeans. It was introduced in January 1999.
Of all the thousands of exchange rates that exist in the world, the euro-to-US dollar exchange rate is the most actively traded, or most ‘liquid’.
Since its introduction, the euro’s lowest value against the dollar came in October 2000 when EUR/USD hit lows of 0.8231. The currency was strongest in July 2008, shortly before the worst stage of the 2007-2009 financial crisis, when EUR/USD reached 1.6038.
There are currently more than twenty nations and territories which peg their currencies to the euro, the largest of which is Denmark.
The euro banknotes and coins
The Euro is issued in banknotes of €5, €10, €20, €50, €100, €200, and €500, and in coins of 1 cent, 2 cents, 5 cents, 10 cents, 20 cents, 50 cents, €1, and €2.
The banknotes feature images of historical and cultural figures from across the European Union, while the coins depict each member country's unique design. The design of the Euro banknotes and coins is intended to be easily identifiable and difficult to counterfeit.
Travel Ideas and Money Tips for the Eurozone
No destination holds as much variety and cultural difference as Europe. From the sunny south to the snowy north there is no shortage of places to see here. When arriving at any new destination for first time visitors it cant hurt to stop by the Tourist Point to get any free maps, discounts, and cost free events. Most decent hotels have free WiFi so try using this to avoid any suprise Roaming fees on your phone when you get back home. ATM and credit card use varies greatly between countries so purchasing a Pre-paid Travel Card before leaving for your travels can save time and hassle.
If you would like to travel by train and can book a fare way in advance you can save money by getting a pass for Europe's extensive train system that goes pretty much everywhere. You can check prices at sites like RailEurope. To save a lot of travel time and money you can book a sleeper cabin on an overnight train. While travelling across Europe by bus used to be uncomfortable there are now low cost luxury buses available. And now to save even more time at your locations instead of travelling to them, costs for flights have greatly reduced in recent years making it a very affordable and very fast way to get around. Depends on your preference.
The Euro currency is widely used across most of Europe which makes it very convenient, so if you plan to spend most your travel time in Europe try to convert a chunk of currency before you go to get the best rates. It’s a little known fact that the closer you get to the departure gates in any country the worst the currency exchange rates get! In fact travellers can end up paying more than 10% extra if you load up on your overseas currency at airport bureau de change outlets.
If you end up buying your travel money on depature day without pre-ordering online you are most likely wasting some of your money.
How is the Eurozone different to the European Union?
The Eurozone is a monetary union of 19 European Union (EU) member states that have adopted the Euro as their official currency. These countries have agreed to use the Euro as their sole legal tender, and their monetary policies are coordinated by the European Central Bank (ECB).
The Eurozone was established in 1999 with the goal of promoting economic stability and growth, and to facilitate trade and investment between member states. The Eurozone countries are Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain.
The Eurozone countries maintain a high level of economic integration and share a single market, which allows for the free movement of goods, services, and people among member states. This makes it easier for businesses to operate and for people to live and work across different countries.
It's worth noting that not all European Union (EU) member states are part of the Eurozone, for example, Bulgaria, Croatia, Czech Republic, Denmark, Hungary, Poland, Romania, Sweden and United Kingdom are not a part of it.
Expat Money & Business Guide to the Eurozone
Managing your money effectively while living and working abroad can be challenging, but there are several steps you can take to ensure that your finances are in order.
By following these tips and managing your money effectively, you can reduce financial stress and enjoy your experience living or doing business in the Eurozone.
Which Eurozone country has the cheapest cost of living?
The cost of living varies greatly within the Eurozone, and it depends on various factors such as housing, transportation, healthcare, and taxes. However, some of the countries in the Eurozone with relatively lower cost of living include:
Greece: Greece has a relatively low cost of living compared to other Eurozone countries.
Portugal: Portugal has a lower cost of housing than in other Eurozone countries.
Spain: Spain also has a relatively low cost of living, particularly in the southern regions such as Andalusia and Murcia.
Ireland: Ireland has a relatively low cost of living, particularly in the regions outside the main cities like Dublin.
Cyprus: Cyprus has a relatively low cost of food and transportation.
It's important to note that these are rough estimations, and the cost of living in these countries may be different for various factors such as location, lifestyle, and personal preferences. It's also worth noting that these countries are not part of the Eurozone, but they are in the EU and their currencies are pegged to the Euro.
What is the best country to setup a company in the Eurozone?
There is no definitive answer to what the best country is to set up a company in the Eurozone, as it depends on various factors such as the nature of the business, the target market, and the specific needs and goals of the company. However, some countries in the Eurozone are generally considered to be more favorable for businesses than others.
Some of the countries that are considered to be among the most business-friendly in the Eurozone include:
- Ireland, known for its favorable corporate tax rate of 12.5%.
- Netherlands, known for its business-friendly regulations and strong logistics infrastructure.
- Estonia, known for its e-residency program and digital-friendly government.
- Germany, known for its large market and strong economy.
It is worth noting that each country has its own specific regulations, taxes and legal requirements that might fit some businesses better than others. It is recommended to consult with business experts and legal advisers for a tailored advice for your business.
Managing your finances in the Eurozone
Here we list some key points for expats and businesses to consider when managing financial dealings in the Eurozone:
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Understand Euro currency exchange rates: Exchange rates can have a big impact on your finances, so it is important to keep an eye on the EUR exchange rate and consider using a currency exchange service or a credit card that does not charge foreign transaction fees to get the best exchange rate.
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Use a local Euro bank account: A local EUR bank account can make it easier for you to manage your finances and pay bills while you are in the Eurozone. It may also be more convenient to use a local EUR bank account to make purchases and withdraw cash.
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Research local laws and regulations: It is important to understand the local laws and regulations that apply to financial transactions in the Eurozone. This can help you avoid legal issues and ensure that you are complying with local requirements.
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Consider the tax implications: It is important to understand the tax implications of living or doing business in the Eurozone. This can help you plan your finances and ensure that you are paying the correct amount of tax.
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Seek financial advice: If you are unsure of how to manage your finances in the Eurozone, it is a good idea to seek the advice of a financial professional who is familiar with the local financial system. This can help you make informed decisions and avoid financial pitfalls.
You can read about the best providers and compare the latest deals for international money transfers to the Eurozone in our Send Money to Europe guide.
EUR/USD – Market Data
The exchange rate of euro (EUR), or the amount of EUR that can be exchanged for a foreign currency, can fluctuate rapidly based on a number of factors, including economic conditions, interest rates, and political events. Below you can check the latest EUR/USD rate plus recent trend, chart, forecasts and historic rates.
| Date | EUR/USD | Change | Period |
|---|---|---|---|
15 Mar 2023 | 1.0582 | 2.5% ▲ | 2 Week |
29 Dec 2022 | 1.0661 | 1.7% ▲ | 3 Month |
29 Mar 2022 | 1.1092 | 2.2% ▼ | 1 Year |
30 Mar 2018 | 1.2330 | 12.1% ▼ | 5 Year |
31 Mar 2013 | 1.2815 | 15.4% ▼ | 10 Year |
03 Apr 2003 | 1.0730 | 1.1% ▲ | 20 Year |
Compare Euro Exchange Rates & Fees
The below comparison table makes it easy to find the best exchange rates and lowest fees when you want to make an International Money Transfer to the Eurozone or planning a trip or maybe living there, so will need to exchange and spend Euro.
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It is important to note that the exchange rate of the euro can change rapidly and that past performance is not necessarily indicative of future performance. It is advisable to carefully consider the risks and factors that may affect EUR exchange rates before making any financial decisions.
The Euro is also the domestic currency in 33 other countries.
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