Money, Currency and Cards in Faroe Islands
Local Currency
Danish Krone (DKK)
General Advice
As a self-governing region of the Kingdom of Denmark, the Faroese government prints its own currency, the króna, although Danish coins are used. The exchange value is equivalent to the Danish krone, and there is no service charge on exchange, as Danish notes are equally acceptable as the Faroese króna throughout the country.
Money Exchange
Banks and post offices provide foreign exchange services. Banks in major towns and some villages are open from 0930 to 1600 weekdays. On Thursdays, hours are extended until 1800. All banks are closed on Saturdays and Sundays.
ATM Availability
Secure Automatic Teller Machines (ATMs) are available for MasterCard/Eurocard, Visa and Dankort at various locations, e.g. at the banks located along the pedestrian mall in the centre of Tórshavn. At Hotel Hafnia in Tórshavn you can withdraw money on your American Express. Automatic Teller Machines (ATMs) are available from 0600 until 2400 every day. For more information check the Visa ATM locator, the MasterCard ATM locator or the American Express ATM locator for the addresses of ATMs around the world.
Credit Cards
Most banks provide cash advances on credit cards. Although several shops in the Faroes accept DK, Visa and MasterCard, it is better to have some cash available if you visit the smaller villages.
Travellers Cheques
Travellers cheques are accepted in banks, restaurants and larger shops.
Other Information
Tax Free Shopping
As a guest in the Faroes, the holiday and business traveller is exempt from the 25% value added tax (VAT) on purchases over DKK 300. Look for the blue and white “Tax Free for Tourists” sign in the shop window. Over a hundred shops at various locations in the Faroes are members of the “Faroese TaxFree System“ and will gladly help you to obtain your tax refund. Ask the sales clerk at the time of purchase for a “Tax Refund Cheque.” Complete the necessary information requested on the form and have the sales clerk validate the Cheque. Upon arrival at the airport or harbour, contact the customs officials before you checkin your luggage. The customs agents may ask to see your purchases before validating your Tax Refund Cheque. Proceed to the Tax Refund Agent, either at the airport or on board your ferry or cruise ship, for a full refund of the VAT. If you forget to cash your Cheque before you leave the Faroes, the stamped Cheque can be sent to “The Faroese TaxFree System”, who will send you the money or transfer it to your bank account.
Tipping
Tipping is not the custom. Service fees are normally included in the price, whether for a fancy meal in a restaurant, a taxi ride across town, or a trim at the hairdresser.
