It is always a good idea to have separate personal and business accounts, so you are doing the right thing to have them both.
My understanding of the French declaration rules (and that is all they are, the need to declare the Paypal account on your tax return as an overseas bank account) would apply if it is not a Paypal account directly linked to a French bank account. This declaration is simply to state that it exists, the date it was opened, and to give the number and the address of the overseas bank, ie Luxembourg. By making the declaration, you are certain, in the event of any future discovery of this account by the tax authorities, not to have to pay the horrid fines. Even if the account only has 15 cents in it, you are still liable to these fines, as people with what they consider to be dormant accounts have found out to their horror.
You can accept money into your account from anyone around the globe, and of course as far as Paypal are concerned, there is no legal reason at all for a French resident to have a French Paypal account - you can have a British one, a German one, or one from Outer Mongolia should you so wish. You can also chose to have your safety blanket, that is of course completely ‘legal’ - but just remember that Paypal are not the ones to advise you on how to complete your annual tax return in France!
Nothing is lost by declaring any not directly linked to a French account, so my advice would be, if in doubt declare - then you don’t have to worry about it any more. Should it turn out to be unnecessary, that is not an issue.
I don’t know why this sprung to mind as being a possible problem when I first read about the ‘Paypal Blanket’ - love the name - obviously the way my accountant brain works! Did not mean to scare anyone, just a random thought.
Let’s consider it the ‘Thought for the Day’ and leave it there. Have a fabulous day everyone! Sandra