Hi Nadia. I’m pretty sure that you need to verify your PP account for a sum like that in order to use the money for purchases or to transfer it from PayPal to your bank account.
They might freeze your account until it’s verified. Then of course, once you’re verified, they should defrost it. But I’d also rather do the verification first and then withdraw, just to avoid unnecessary forth and back.
I don’t remember how long exactly the verification took for me but I think just a few days, a week max.
PayPal also has to report to your financial authorities for … I’m not sure about the threshold but think it might be as low as $2000 a year, so you need to make sure to declare it as income/whether you need to declare it as income.
You’ll have to inform yourself about the detailed tax regulations for Spain and your specific case (is it your only job? do you get money elsewhere? are you a student? is your Fiverr work classified as a profession you might have to take and pay VAT for? how are the thresholds for VAT, yearly revenue/income?, … , or ideally ask an accountant. You can also ask your local tax authority, they’ll probably give you a few pointers, the right forms to fill out, etc.
I doubt that even Spanish forum users would want to give you definitive answers in that regard, nobody wants to have the feeling of being responsible for perhaps saying something that’s maybe not 100% correct in your case, or forget to mention something.
You may also need to inform your health insurance, depending.
It’s not really that complicated but (digital) paperwork, of course. Either you’ll have to work yourself through it all or find a reliable and able person to do it for you, aka an accountant.