Thirty-two of the top prize tickets totalling a staggering €128 million (£113.36 million) were sold at a shop in the gateway to the popular British holiday destination.
Another two shops in Malaga also sold a tenth of a ticket – known as a decimo in Spanish – carrying the top prize number 71.198, another €800,000 (£708,000).
The top prize ticket was drawn just before midday today nearly three hours after children from a Madrid school began singing the winning numbers in the traditional draw held every December 22.
The fact Malaga was blessed with such good luck in this year’s lottery – popularly known as El Gordo –increases the prospect a British expat or lucky tourist may have become an overnight millionaire.
Lugo in Galicia was among the other cities to do well in the annual Christmas lottery.
A single lottery shop there sold 130 of the top prize tickets – worth a staggering €520million (£460.9 million).
Another ten provinces shared in a part of the top prize, including Murcia and Tenerife.
The exact identities of the winners are not yet known but are expected to leak out during the day.
Other lotteries have larger individual top prizes but El Gordo, which dates from 1812, is ranked as the world’s richest for the total prize money on offer.
The possible total prize money in this year’s daw was €2.38 billion (£2.11 billion) spread across 15,304 prizes including 1,794 prizes of €1,000 each (£886).
Many punters buy tenths of tickets called decimos, which cost €20, in the hope their number is called as the top prize and they win €400,000 (£354,654).
Others share the cost of the decimo between them but obviously have to share out the prize money.
Each full top prize ticket – split into the ten identical decimos – is worth €4million (£3.55 million) and costs €200 (£177).
Council workers in Malaga were this morning said to be among those celebrating, with local reports saying one employee working in the mobility department had bought 70 decimos for himself and colleagues.
Last year a town of just 568 inhabitants an hour’s drive south east of Madrid became more than €120 million (£106 million) richer thanks to Spain’s famous El Gordo lottery.
A women’s association in Brea de Tajo struck lucky with the top prize after 10 years buying the same number.
President Antonia Reyes told how she bought several tickets bearing the top prize number – number 66513 which appeared on 1,650 different tickets – at a lottery office in the Spanish capital for locals who sold them on to friends and relatives.
More than 300 decimos ended up in the hands of villagers and a lucky few in neighbouring populations who paid Antonia a small surcharge to help fund the association’s running costs.
Antonia celebrated by organising a New Year’s Eve trip to Benidorm.
Antonela Basca, a day centre worker who has been living in Brea de Tajo for 14 years and was in debt after splitting from her husband, said afterwards: “When I got a phone call to say we’d won the top prize I couldn’t believe it.
“I was at a friend’s house. I was going through a really bad time of it and was struggling to find enough money to put food on the table.”
The 39-year-old Romanian immigrant, who got €400,000 (£354,654) for the decimo she bought for herself, her new boyfriend and her jobless 19-year-old son, told Spanish newspaper El Pais: “I’m going to carry on working because I love what I do which is helping others.”
Town mayor Rafael Barcala Gomez also won thanks to a decimo he was given and described himself at the time the “happiest mayor on Earth”.