We were there a couple of years ago for Christmas. There were lots of places to go for traditional christmas lunch - you might be better to book in advance.

Weather was lovely and warm Brits wearing Christmas hats in the street etc

We used to eat at the Royal Oak, I'm sure someone will say if it's still there.
You do have to book and be prepaired to pay extra.
It was a proper English Christmas meal with the tree and Carols and everything.
Christmas we found was a low key thing with only the English getting into the Christmas spirit.
The Spanish have 6th of Jan as their special day.
Three Kings Day.
When they go round the streets dressed as Kings throwing sweets to the children.
The first time we saw that about 10 years ago it was done on horse back lovely, but got a shock in Lanzarote last year when a load of idiots in open topped cars were racing round the streets doing it.