"Spain’s economic growth is set to pick up as domestic demand benefits from an improving labour market, easier financing conditions, greater confidence and lower oil prices," the Commission said.
In its winter economic forecasts, published on Thursday, the commission said it expected the Eurozone´s fourth largest economy to grow by 2.3 percent this year and rise to 2.5 percent during 2016.
The figures were a positive revision from the 1.7 percent and 2.2 percent forecast at the end of the last quarter and underscore the turnaround of Spain´s fortunes.
Spain emerged from a nearly two and a half year recession in the summer of 2013 and its GDP grew by 1.4 percent during 2014.
The report said a strengthening recovery is helping rebalance Spain's public finances and the "government deficit should continue to narrow".
It expects the government budget deficit to fall to around 4.5 percent of GDP in 2015 and to 3.7 percent of GDP in 2016, just a point off the target stipulated by Brussels of 3.6 percent.
The commission said job creation will intensify over the next two years, and predicted a three percent drop in the unemployment rate by 2016.
The jobless rate fell to 23.7 percent by the end of last year from a peak of 26.9 percent early 2013.
It also said that exports are expected to accelerate during 2015, backed by continued improvements in price and non-price competitiveness.