Robert Sneddon, 61, died near Alicante on Sunday night when he was hit by a white Land Rover as he crossed the road in the dark.
The driver – believed to have been carrying a number of passengers – fled the scene, leaving the former navy man to die.
However, the mangled car was recovered and pictures released by Spanish police show a UK number plate.
It has now emerged that the vehicle was first registered in the Capital in spring 2013. The News understands it was sold again in January this year.
Mr Sneddon’s daughter, Mandy, was out visiting her dad on holiday with her young daughter when the tragedy struck and told how she had been forced to identify his body.
She said: “It’s beyond anything you think could ever happen to you.
“We don’t have a clue what happened or who was driving the vehicle.
“The police are saying there may have been three passengers. I’ll stay out here for as long as it takes.
“I just don’t understand how someone can leave someone lying in the middle of the street like that and just run away.
“You wouldn’t leave a dog like that. I just want to know what happened and who did this.”
Retired Mr Sneddon, who formerly worked as a psychiatric nurse in Edinburgh, was a grandfather to four.
He was brought up in the Capital, but has lived in Spain for around 15 years.
His son, who asked not to be named, told the News that his dad had been on his way home from a pub around 10.30pm on Sunday when he was hit by the vehicle on the N332 road.
He received a message from the Spanish police a short time later and plans to travel to Alicante today.
He said: “My sister was very close to my dad. She had to wait until her daughter woke up the next day to tell her he’d passed away.”
Mandy added: “I had to ID his body and it was totally horrific. He would have been dead on impact.
“As a father he was absolutely brilliant. He has four grandchildren as well and he’s absolutely brilliant with my daughter. They got on so well.
“He was a practical joker and was very popular over here. He had loads of friends, Spanish and British, and they’ve been a good support.”
A spokesman for the Foreign and Commonwealth Office said: “We are providing assistance to the family of a British national who sadly died in Guardamar del Segura, Spain, on August 21.”