You can only close accounts, unfortunately PayPal won't let you delete them. They keep track of everything. Before you close your account, make sure you have no outstanding transactions, (disputes, claims, refunds, etc.). Then remove any banking and credit card info. If you plan to use the same banking and credit card info, you will need to contact customer support for assistance as the system won't let you relink those items by yourself. (It's a system security precaution put in place for your own benefit although most folks seem to get upset over this - also best to call as email requests usually don't help with this particular challenge.)
As for your email address, you will need a new one. If you try to reuse it, the system will tell you it's already linked to another account. (Again, another system security precaution.)
