NO I do not think so certainly not in the Valencia region unless it is different in other parts but I doubt it. Everyone pays 7% based on the declared value as written into the excritura (deeds) HOWEVER where is sometimes scope for a small reduction is the Land registry tax - if it is going to be your main residence (ie not a 2nd home/holiday home) the standard rate of 1% can sometimes be negotiated down. Remember if you dont ask you dont get! Having residencia IS BENEFICIAL for other reasons so I would recommend applying ASAP.