Centro de Idiomas SHM is a privately run Spanish and English language school which has been established in the city centre since 1995.  The school offers a wide variety of courses and activities for students of all ages.  The school has a friendly and relaxed atmosphere.  The staff and teachers form an integral part of each student´s stay and as such, work hard to make sure that everyone feels part of the SHM family.  As part of the cultural activities, language exchanges and city activities are included in the price of the course.  Granada is a fantastic location to study, at the foot of the Sierra Nevada mountains yet only 30 minutes from the coast, year round activities are easily combined with language courses.   Website: http://www.shm.edu 

Centro de Lenguas Modernas
Part of the Universidad de Granada, this school offers language classes and Spanish history, culture, literature, etc, all oriented toward Spanish language students. The school has Spanish classes for foreign students, and other language classes for local students. So, they set up meetings every once in a while to get together with Spanish students and do an intercambio, which I honestly think is the best way to learn. You get together a couple of times a week, help the Spanish student with his/her English, and they help you with your Spanish.
Website: http://www.ugr.es/~clm/indexing.htm

Carmen de las Cuevas
Located in the Albayzin, this school offers both Spanish language and flamenco classes.
Website: http://www.carmendelascuevas.com/

Escuela Montalbán
Escuela Montalbán has been offering Spanish courses in Granada since 1986. The Spanish language school is accredited by the Spanish Instituto Cervantes and is a DELE examination center. Escuela Montalbán is a member of TANDEM International:
www.escuela-montalban.com

Abadat
Located not in Granada by in nearby Ubeda, which is a beautiful Renaissance City in Jaen Province. The setting is magnficent and the instructors excellent. You will get lots of individualized attention.
Website: www.abadatescuela.com

Escuela Delengua
Located in the very center of Granada, Escuela Delengua offers Spanish courses and cultural and leisure activities for a full immersion. The Spanish courses, with very competitives prices, start on any Monday around the year at any level, from A1 to C2. The class material is included and there is no registration fees!
http://www.delengua.es

Worldfriends

Located  in the city center. Offer good lessons at a very competitve prices.

Very small groups. 

Website: http:/www.worldfriends.es