Is "Happy New Year!" more commonly translated as "¡Feliz Año Nuevo!" or "¡Próspero Año Nuevo!"? Are the two basically synonyms, or is there a difference between the two?
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I'd say "Próspero Año Nuevo" is more formal and not really use in speech. You'll find it in Xmas cards, etc.
"Feliz Año Nuevo" is used but for a more informal form you can just say "Feliz Año". "Feliz Año" is what you hear everywhere these days in Spain.
I would say
It's very common to say