The Spanish Guitar is an instrument that can project in a percussive and lyrical manner. It can reproduce harmonic rhythm and melody at all dynamics. The instrument talks in a unique manner that makes it more suitable for music that does not require sustained melodies or harmony. It works better with accompaniments created with melodic lines rather than harmonic lines.
For example if you are in a duo with piano and guitar the piano will quickly cover up the guitar in sustained harmony. I recommend that you should strive for fluency in harmonic tension and to establish the tempo, rhythm and harmonic accompaniment through horizontal linear melodic development.
The Spanish Guitarist should be versatile in improvisation to allow the instrument to reflect the full capabilities of the performer.
This is a short video portraying some of the above concepts.