Jota was travelling in a car with his 26-year-old brother, Andre, a footballer for FC Penafiel in Portugal, who has also died.
Spanish authorities confirmed the car left the road after a tyre blew out while overtaking another vehicle before it caught on fire.
No other vehicles were involved in the crash which occurred shortly after midnight local time.
Tributes have been laid at Anfield Stadium following Diogo Jota's deathTributes have been laid at Anfield Stadium following Diogo Jota's death (Image: Peter Byrne/PA Wire)
Sharon Purser said: "Tragic news, a great player at Wolves and Liverpool."
Colin Rouse added: "Gutted. One of the greatest I have ever seen at Wolves. RIP you great guy."
Lynda Hale said: "Very, very sad news. My thoughts are with his family."
Rob Smith said: "Very sad news, great player. RIP Diogo."
Susan Jones added: "So very sad. My heart goes out to his wife and children."
Michael Golden said: "Very sad. Only got married 11 days ago to his long-time girlfriend and mother of his three children"
Kimberley Fisk said: "So young, so much to live for. Utterly devastated, a great player for us. Rest in peace Diogo. Thoughts are with his wife and young children. RIP YNWA."
Mick White said: "So sorry to hear about the devastating news about Diogo Jota and his brother being killed in a car crash.
"Our thoughts and prayers to your wife and children and family and friends. RIP."
Steve McGuire said: "Terrible news, just married too and three poor kids."
READ MORE: Former Wolves star Diogo Jota dies in car crash
READ MORE: Pleas to bring home 29-year-old after falling into coma on Hen Do in Spain
READ MORE: Tribute to 'vibrant and kind' woman who died in motorcycle crash
Ray Seal said: "A wonderful, talented footballer has been lost today. RIP Jota, you gave us so much pleasure in his short life. He will be sadly missed."
Jota initially came to English soil playing on loan for Wolverhampton Wanderers in the 2017/18 season.
He would go on to sign permanently for the side where he would stay until 2020.
In that time, Jota made 111 appearances for Wolves, scoring 33 goals.
He then made the switch to Liverpool, where he made 123 appearances, netting 47 times.
He had also made 49 appearances for Portugal, scoring 14 goals for his nation.