im living in Poland and my Paypal is also registered with Polish adress. I wanted to link my Revolut Euro IBAN account to Paypal but im receiving an error about invalid IBAN.
I tried to add my Euro IBAN, but was constantly getting strange errors, so I got in touch with the PayPal support. The agent told me that they are not supporting Revolut accounts. Even if somehow you manage to add the bank account, the transaction won’t go thru. That was ~2 months ago.
Back then I had issues, too. I am in DE with a EUR based account. Same as with you: “We do not accept virtual accounts.” Since people here engaged me to try again I did so. It worked. I have no idea why because everything was the same as before. Now I pay Spotify or DAZN e.g. via PayPal and .