Now that the Spanish police can access the details of British drivers and vehicles through the DVLA database, they are routinely stopping UK registered cars to ensure they are taxed and have a valid MOT or ITV, the Spanish equivalent.
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Thanks to an agreement between the UK and USA, a UK licence holder can drive in the United States if a full and valid licence is held. As long as the licence has been valid for more than a year and is in English, renting a car should not be a problem. That being said, rules between states and rental companies vary.
In order to drive a car around Spain, it is recommended to obtain an International Driving Permit (IDP). This must be carried around in addition to your valid US license. You can obtain this permit at your local AAA branch for a cost of $20 and it has a validity of 12 months.
What are the most important rules? In Spain, we drive on the right, safety belts are mandatory for all the occupants of the vehicle and there are speed limits on all roads. These are 120 km/h on dual carriageways and motorways, 90 km/h on all other roads and 30 km/h in built-up areas.