The large area at the top of Almuñecar next to the "arc de triomphe" where the Friday market is held has free parking.
The best thing to do is to park in the free parking and go walking.
Large supermarkets like Lidl and Mercadona have their own parking.

There are some underground car parks for example there is one underneath the fish, meat and vegetable market and another at the seafront.

Most of the rest of Almuñecar is marked out as blue zones which are pay and display areas. 

You will very often see foreigners in Alumuñecar who have got a fine and don't know what to do because there are no instructions in English.

The important thing to remember is don't park in a blue zone without paying or trying to pay because you will get a fine.

The blue zones are pay zones and you must buy a ticket from a machine and then display it in the car window.

After parking in a blue zone look around for the machine. If the machine is obviously broken then you don't have to pay. (some of the machines are disabled at certain times of the year)

The lowest you can pay is 50 cents which gets you about an hour. The machines don't give change so you will need some coins.

Some areas of high transit have maximum stay periods.

What to do if you get a fine:
There are probably many people who will vow never to return to Almuñecar after getting a fine and then not knowing what to do with it. If you get a fine due to overstay or non display then the traffic warden will leave a ticket on your car.   
   
You have the option of a hefty fine (aprox. 80 euros) or to pay a lot less immediately (about 9 euros).
Go to the nearest parking meter and press the button "pagar multa". Put in the correct amount of money and you will be issued with a payment ticket. Tear along the dotted line and put half in the slot at the bottom of the meter and keep the other half. It's possible you also have to put in the ticket that you were originally issued. I'm not sure.

However as you have read this and understand what the blue zones mean you won't get a fine anyway.