Since I am soon to be in a similar situation and there seemed to be many posts like this one unanswered by PayPal, I called them. After being transferred to an account specialist, I found out that you cannot have a US PayPal account with an international address, even when all associated banking institutions might be in the US. If I were to set up an international PayPal account with an international address, even though the associated bank accounts might be with US banking institutions, there would be fees for both bank and credit card transfers because the system doesn't look for where the banking institutions are but where the PayPal account is.
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