after 5 hours of research and reading outdated paypal documentation I finally give up!
I need to test a simple paypal subscription button with the paypal sandbox.
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Perhaps this will help: https://cms.paypal.com/uk/cgi-bin/?cmd=_render-content&content_ID=developer/e_howto_api_ButtonMgrAPIIntro
Not all merchants in every country can use all the buttons that can be created. For example, German merchants cannot use Subscribe buttons even though they can be created through the API