Club vice-president Adriano Galliani confirmed on Thursday that Milan were close to making their fourth and final signing of the January window and Vila, 21, has now followed Antonio Cassano, Urby Emanuelson and Mark van Bommel to the club.
The deal for Vila, who signed a new contract until 2015 less than a year ago, is reported to be worth around €3 million.
The move provides Milan with cover in the Champions League as Emanuelson, who signed from Ajax, is cup-tied in the competition.
A statement on the Milan official website read: "A left-back was the last missing piece of an excellent transfer campaign carried out by the Rossoneri management. The mission has been completed as 21-year-old Dídac Vilà Rosselló has joined Milan from R.C.D. Espanyol de Barcelona.
"Once again, Adriano Galliani's personal intervention proved to be decisive, as the Milan CEO left for Barcelona immediately after the presentation of Van Bommel and Emanuelson to return to Italy with the Spanish starlet, who's seen as the final piece to complete the Rossoneri defence."
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