I opened my personal account a long time ago when I was staying in Hawaii for a couple of months, but I specified my usual address in London, UK on the registration form. PayPal did not have any problems with that account for about a month, but then limited it. When I contacted PayPal customer support, they said that I'm supposed to have an account registered in the country where I live (they've flagged it because of the non-UK IP I had at the time). They told me to log in from my usual location in the UK and change the password after which they would remove the limit. Since I was enjoying lots of sun on the beach, I just got a UK VPN and did it from there. Then contacted PayPal and said that one of my relatives had done what they requested. After that the limit was removed.
By the way, the quickest way to contact PayPal customer support and get answers almost immediately is via Twitter - @AskPayPal
Simply, follow them and tweet to them that you have some sort of a problem. They will start following you, so you can send a direct message to them. Just shoot your PayPal e-mail address via DM, explain the problem and they will solve it a lot quicker than the usual process.