Ai! My driving license was almost expired, so I had to apply for a new one. Luckily my Dutch license is valid in Spain, and it was easy to change it to a Spanish one. In Spain you do need a medical certificate stating you are fit to drive. This costs around 45 euros and the test involved a measurement of your blood pressure and some questions that basically ask you if you are alright. I passed the test and now I drive around with a a4 paper stating it is my temporary license, until my plastic card arrives.
Yes, you can drive with that license.