Zaragoza, 22, has signed a contract with the Bavarian giants through June 2029.
"Bryan Zaragoza is an explosive, very quick and extremely nimble winger, who can play on either side," Bayern sporting director Christoph Freund said in a press release.
"He's unpredictable, can score and is very good one-v-one. He's already made his senior debut for Spain this year and has a lot of potential."
Zaragoza, who grew up in Malaga in southern Spain, made his first team debut with Granada in the 2021-22 Copa del Rey, before breaking into the squad more regularly during the following campaign in LaLiga2.