There are a few essential details to understand about the Big Island of Hawai‘i if you want to do a smarter property search. It’s important that you know these before the showing requests, Zoom consults, and even before you bookmark your first oceanfront listing.
The KE Team is here to make sure that you’re prepared for the Hawai’i real estate landscape, whether you’re a mainland agent guiding clients or a buyer envisioning a luxury lifestyle in paradise. These five foundational insights are the most common, yet over-looked details that we always address with our own clients when we first start looking for properties here on the Big Island of Hawaii.
1. Yes, You Can Absolutely Own Land in Hawai‘i
It’s a surprisingly common question: Can you actually own land in Hawai‘i?
While ancient Hawaiian culture embraced a communal land system called Ahupua‘a, today’s property laws are fully modern and secure.
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Most properties are Fee Simple, meaning you own the land outright.
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Leasehold properties still exist but are increasingly rare, and typically don’t in the luxury segment.
2. Starting with the Basics: Taxes & Withholdings
Understanding how real property taxes and closing withholdings work can help set expectations from the beginning.
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Properties are assessed annually at the market value by each County/island. There are non-resident and resident tax rates. For the Big Island (Hawai‘i County) it’s 1.1% of assessed value.
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There are no special taxes for non-residents, but there is a 7.25% HARPTA withholding for out-of-state sellers, which is applied to the gross sale price at closing.
Think of HARPTA as a state-level escrow hold. It’s not a tax, and most sellers receive a refund or adjustment after filing their state tax return.
3. “Big Island” is a Key Distinction
The entire state is called Hawai‘i—but the largest island in the chain is also officially named Hawai‘i. Confusing? We thought so too. To avoid this confusion, locals and real estate professionals refer to it as the Big Island. On this topic, there are also two Kailuas in the state of Hawai’i which is also confusing… We call the one on Big Island as Kailua-Kona or simply “Kona”.
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Big Island where the first Hawaiian Kingdom capital was located.
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Big Island is also where you’ll find some of the state’s most exclusive real estate, including high-end resort communities like Kukio, Hualālai, Mauna Lani, and Mauna Kea Resort.
4. The Climate Changes Everything
(My good friend Renata enjoying Mauna Kea. Skiing on Mauna Kea is not recommended for everyone! She is from Austria, so she’s a pro!)
The Big Island is one of the most climatically diverse places on Earth, featuring 10 of the world’s 14 climate zones within a single island. It’s not an exaggeration to say that where you live completely shapes your lifestyle here.
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Sun-shining beach days all year long? Look to the Kohala Coast.
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Breezier ranch-style living with lots of space and privacy? Explore Waimea.
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A lush, green, tropical farmland setting? Consider Holualoa.
5. Hawaiian Names Are Beautiful… And Sometimes Confusing
You don’t need to speak Hawaiian to search for property here, but you’ll want to become familiar with the rhythm and logic of the language.
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Nearly all subdivisions, roads, and landmarks have Hawaiian names.
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The Hawaiian alphabet has just 12 characters—five vowels and seven consonants—which is why many names sound similar.
Before the Search Begins, Start with the Right Mindset
The process of buying real estate on the Big Island begins long before your first showing. To buyers, sellers, and agents who are looking for the first time in Hawai’i, it can be overwhelming.
We’re here to help you navigate the Big Island with precision and perspective.
Let’s talk strategy, location, and lifestyle—contact us to start the conversation.
(KAI）