As from the 16th March British can drive in Spain with a uk licence but have 6 months to do the exchange.
Below i have translated more or less the official statement.
The agreement, in the form of an exchange of verbal notes between the Kingdom of Spain and the United Kingdom of Great Britain and Northern Ireland, also establishes the exchange of information on traffic violations related to road safety.
In this way, holders of a valid driver’s license in either of the two States may apply for an exchange in the country where they have established their residence without the need for an additional practical or theoretical test.
On Tuesday, the Council of Ministers approved the agreement by which Spain and the United Kingdom will proceed with the reciprocal recognition and exchange of driving licenses as well as the exchange of information on traffic violations related to road safety.
This agreement puts an end to the successive extensions applied for the exchange of licenses between both countries that had been in place since the end of the transitional period provided for in the Agreement on the Withdrawal of the United Kingdom from the European Union.
From now on, holders of a valid and in-force driver’s license issued by either of the two States may apply for the exchange of their equivalent driver’s license where they have established their residence, without being subject to any additional practical or theoretical test requirements and in accordance with the equivalence tables between the categories of licenses of both countries.
The agreement establishes that all valid licenses or permits of current residents issued prior to its entry into force may be exchanged, while for licenses issued after such entry into force it will be an essential requirement to access the exchange that the licenses have been issued in the country where the applicant had their legal residence.
With this agreement, British citizens residing in Spain who had not completed the recognition of their driver’s license before Brexit, nor in the successive extensions granted, may do so from Thursday, March 16.
To facilitate administrative processing at provincial traffic offices, a six-month period has been granted during which British citizens may travel in Spain with their original license while processing the exchange.
In addition, Spain and the United Kingdom commit to providing each other with information on vehicle data and their holders for the purpose of investigating traffic violations related to road safety, especially in cases of speeding, not wearing a seat belt, not stopping at a red light, driving under the influence of alcohol, driving under the influence of drugs, not wearing a protective helmet, driving in a prohibited lane, or illegal use of mobile phones.
If you need help in exchanging then we can help see below.