Don't put any space between letters. Have you tried it? Another checkout the country list whether PayPal is accepting there or not? You can see the list of the countries when you try to put IBAN.
Paypal is 'country specific' so advice often depends on what country you are in. As you have not added your country to your community profile or said in your post then we can't help at the moment.
Advice is voluntary. Kudos / Solution appreciated.
