I dug out this link to the EU Directives stating the legal requirements and also stating that National Laws are applied to each EU member state.
http://eur-lex.europa.eu/smartapi/cgi/sga_doc?smartapi!celexapi!prod!CELEXnumdoc&lg=EN&numdoc=31991L0439&model=guichett
This I copied from above about Residency status and how to confirm,
Article 9
For the purpose of this Directive, ‘normal’ residence means the place where a person usually lives, that is for at least 185 days in each calender year, because of personal and occupational ties, or, in the case of a person with no occupational ties, because of personal ties which show close links between that person and the place where he is living.
However, the normal residence of a person whose occupational ties are in a different place from his personal ties and who consequently lives in turn in different places situated in two or more Member States shall be regarded as being the place of his personal ties, provided that such person returns there regularly. This last condition need not be met where the person is living in a Member State in order to carry out a task of a definite duration. Attendance at a university or school shall not imply transfer of normal residence.
The EU issued the “Community Model Driving License” for use accross the EU, ie one license for all, currently there are 88 different styles.
In 2012 it will reduce, this is copied from the above link, but explaining that the license will be issued in the Birth Country of holder and will allow country of residency info and allow penalties for all EU members.
national codes valid only for driving in the territory of the State which issued the licence.
The date of first issue of the licence for each category must be transferred to page 3 in the event of subsequent replacement or exchange;
page 5 may contain information such as:
-any periods during which the driving licence has been suspended,
-serious offences committed in the territory of the State of normal residence and taken into account in the procedure for monitoring drivers which obtains in that State;
page 6 shall contain:
-validations restricted to the territory of the State which granted them on grounds of equivalents or for categories of vehicles not covered by this Directive (including dates of issue and periods of validity),
-spaces reserved for (optional) entry of changes in the holder’s normal residence.
3.The entries on pages other than page 1 shall be in the language(s) of the Member States which issued the licence.
This expalins the differences and all the info you require regarding rules !!!!!!
http://ec.europa.eu/transport/home/drivinglicence/principles/001_en.htm
The above link states you no longer need to exchange the license when becoming resident, i`ve added it here
Mutual recognition
1. The principle
Article 1(2) of Directive 91/439/EEC stipulates that all driving licences have to be mutually recognised within the European Union. Where the holder of a valid driving licence acquires “normal residence” in a Member State other than that which issued the licence, the host country has to recognise the licence.
Directive 80/1263/EEC laid down a period of one year during which the exchange had to be carried out by the authorities of the state of residence. This obligation has been abolished since 1 July 1996, the date of entry into force of Directive 91/439/EEC. It is still possible to exchange licences but it has to be based on a purely voluntary action on the part of the licence holder.
At the time of the exchange, the Member State in which the holder has acquired normal residence issues a Community model licence of the corresponding category or categories, without the need for a theoretical or practical examination. Authorities must however check that the licence is valid.
2. Exceptions
Article 1(3) of Directive 91/439/EEC establishes an exception to this general principle of mutual recognition. It is noted that ? Where the holder of a valid national driving licence takes up normal residence in a Member State other than that which issued the licence, the host Member State may apply to the holder of the licence its national rules on the period of validity of the licence, medical checks and tax arrangements and may enter on the licence any information indispensable for administration. ?
With regard to the period of validity of driving licences, Directive 91/439/EEC therefore allows Member States to apply their national provisions. In practice, the validity arrangements vary from one Member State to another. This means that a different period of validity, shorter for example, can be applied to the holder of a licence, in the event of change of residence.
With regard to the interval between medical examinations, this has not been harmonised by Community legislation. In the majority of the Member States, it coincides with the period of validity.
Driving licences issued by a non-member country and recognised by a Member State, are not recognised reciprocally in a systematic manner, even in the eventual case that the licence has been exchanged for a Community model in the meantime. It is therefore advisable to contact the competent national authorities.
Member States are not obliged to recognise driving licences issued to persons aged under 18.[/color]
So as stated above in the 1st paragraph Spain can and does inforce its National Rules.
Spains rules for drivers under the age of 45yrs your license is valid for 10 yrs, from the date of issue and requires a medical.
Therefore you don`t need to replace your UK License, but it does need to comply with Spanish law regarding medical and periods of validity.
Simple then.