The catch is spotty internet, spotty electricity, no running water ( running water on the main island everywhere else is rainwater collection ), and shitty doctors.
Healthcare is cash only, if you had a serious problem I would recommend going back to the US.
If you spend over 50K for a house you get dual citizenship, you don't give up your US citizenship ( I personally wouldn't move anywhere where you have to give up US citizenship ) , you still pay taxes on any money earned in the US.
It's not a perfect solution at all, you just have to figure out what you value the most.
I will say, I spent 6 months down there, and coming back was hell. Why do we live this way ? The natives their fish out of the ocean for their food, they don't have alarm clocks, they don't have _any_ paperwork, and there some of the happiest people I've ever met. I'd trade my material shit for their freedom most days.
My Spanish is no bueno, but if my job was "learn Spanish", I don't think it'd be a huge problem.
Wouldn't you have to worry about political instability down in Panama? How would health care work? Can I return to the US if I leave? Do I have to give up US citizenship? Would Panama be ok with me working remotely?
There's gotta be some catch besides the choice of language.