Was there ever a definitive answer on this? I live in the USA but have a Dutch bank account, which uses my USA address. I set up a Paypal for the Dutch account/credit card and a separate one for my USA account/credit card. Everything worked fine until PP wanted me to resolve a limitation due to me trying to send some cash as a wedding gift to the UK. I'm supposed to prove my address in NL but it is in USA and the drop down list only has one choice. The NL bank and credit card company both have my USA address as the account address so this all above board. In this day and age of globality, this should not be so difficult.
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