The most common and most likely answer to this crossword clue is the 8 letter word VALENCIA
I've seen this crossword clue in The Daily Telegraph
V
A
L
E
N
C
I
A
More clues leading to the result VALENCIA
- Winding canal I've found in foreign city
- During holiday, Leonard and I head for ancient Spanish city
- Type of orange drink, oddly nice, that cuts through
- Traditional farewell by Northern agents in Spanish city
- Farewell to an Inca ruin in foreign port
- An alive city initially becomes troubled city
- Knight, south of sunken area, spies Spanish city
- Clive, an eccentric, reaching a Mediterranean port
- Goodbye. Can I move to city in Spain?
- Mediterranean city‘s greeting to departing North American spies
Buddy explains!
The straight part
We know that "place in Spain" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case place in spain = valencia.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.