You will need to consult PayPal for this question to be answered correctly also see this page HM Revenue & Customs: Residency
Some of our clients have reported that they don't have any issues with a Cyprus company, PayPal, Moneybookers, AlertPay, 2co.com and other webmoney companies.
I'm one of the satisfied customers of cclogic and who use paypal with a Cyprus company and bank account, we are ablt to withdraw our money to the Cyprus account.
This forum is awesome 🙂 I came back here see 5k new posts and even found a bunch of threads about this issue. The solution is to have a VPN or VPS in Cyprus if a Cyprus paypal account is created.
Thank's guys I will soon be back in business and get in touch with you guys.