So i read that i can deposit my Paypal money to my Bank and since i live in a country (Croatia) where we don't use dollar, i was wondering if my paypal withdraw money will convert to my currency (which is Kn).
Yes. If you are holding a balance in a foreign currency, you may only withdraw that balance (or part thereof) after it has been converted to (a) the local currency, if you are withdrawing your funds to your local bank account or card where available, or (b) U.S. Dollar if you are withdrawing your funds to your linked U.S. bank account or card where available.
