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1. Wait at least 48 hours from your last successful purchase.
2. Make and complete a new purchase with a payment method from your new country (in my case, it wouldn't let me use my Canadian PayPal - threw an error at the end - so I used my Canadian Visa, which worked).
3. As soon as you have successfully purchased something, the region/country will be updated.
So the catch seems to be that you'll need a payment method tied to a bank account in your new country. And it's likely that even if you setup a new PayPal for that account, it might not work immediately (I'm hoping I can eventually get that fixed). It's annoying that despite providing a way to change your country in your profile, that method actually doesn't work. It's doubly annoying that Steam doesn't make it very clear that you have purchase something new with a credit card tied to your new country (which may not work if you try to do this too soon).
That's the answer i got.
Hello,
Thank you for reaching out to us here at Steam Support.
If you have moved to a new region, or are living abroad for an extended period of time, you can update your Steam region to match your current location. You must be logged in from the Steam client from your new location in order to make this change. Steam only accepts payment methods from the country that matches your Steam country setting.
NOTE: Your store region cannot be updated again until you move to a different region.
For more information, please review the Steam Store Country FAQ.
Regards,
Christel
I sent back this:
Read up. I want to change my country to Bulgaria.
Nope this is different.
I'm gonna try babbaginator's way and update it.
Edit: This is what i get when i try to pay with paypal
There seems to have been an error initializing or updating your transaction. Please wait a minute and try again or contact support for assistance.