wrote on Jun 19^th, 2015 at 1:08pm:

I've been told by different people in our village that 3 people have been fined for using a British license they have been told that Spain does not recognize British licenses only European ones now they must obtain a Spanish one , myself I do not pay much attention to what I hear in our village as most of it is crap ::) ::)

Summary of the DGT/Trafico press release:

I           In our opinion, the above-mentioned: ‘Compulsory registration of the foreign residents driving licences’ cannot be enforced. Spain had insisted that this was to be complied with in the past, but they were forced to revoke by European Court.

II         The Spanish Reglamento does not back up the press release by DGT/Trafico and their statement that certain licences need to be   exchanged after 2 years of residency. Only indefinite licences need to switch to Spanish licence by process of renewing (renovar) after 2 years of residency. The European Directive could be interpreted to give this option, (see above) but the Spanish Reglamento has not included it, therefore it is not law in Spain.

III        Spanish authorities should insist on a correction by DGT/Trafico before expats fall victim to this incorrect and confusing interpretation.

IV        CAB Spain will seek legal advice on the possibilities to denounce DGT/Trafico the minute we receive notice that an expat been affected by the recent announcement by Trafico.

CAB Spain is not advising any of the readers that they should not exchange (canje) or renew (renovar) their UK valid licences for a Spanish version. We are merely providing facts based on the law.

http://citizensadvice.org.es/must-residents-exchange-licences-spanish-2-years-residency/