Advisors who manage real estate decisions for clients: family office principals, wealth managers, estate attorneys, and CPAs. It summarizes what is specific to Hawaiʻi Island so you can ask the right questions early.
Marco publishes monthly reports from Hawaii Information Service (HIS) data. In August 2026, Kailua-Kona recorded 36 single-family sales, up 50% year over year, at a $1,062,000 median and 32 median days on market; the Kohala Coast resort communities trade at much higher price points. See the August 2026 market update. Luxury inventory with land, privacy, and turnkey condition is limited, which is why some of the best properties trade with little public marketing. For the scarcity view, read the Big Island as a portfolio asset.
Clients commonly take title through a revocable trust, an LLC, or another entity for estate planning, liability, and privacy reasons. Hawaiʻi does not restrict ownership by non-residents. Structure affects financing, property tax classification (the home exemption generally requires owner occupancy), and future sale. See title structure in Kona: LLCs and trusts.
Not legal or tax advice. Marco In Kona does not provide tax, legal, lending, or investment advice. Review this with your own CPA, attorney, or advisor before acting.
| Hawaiʻi County class (FY 2026–27) | Rate per $1,000 of assessed value |
|---|---|
| Homeowner (your primary residence, with the home exemption) | $5.75 |
| Residential, not owner-occupied: first $2 million | $11.10 |
| Residential, not owner-occupied: portion from $2 million to $4 million | $14.50 |
| Residential, not owner-occupied: portion above $4 million (new tier) | $17.00 |
| Long-term rental | $7.75 |
| Hotel and resort | $11.55 |
| Agricultural and native forest | $9.35 |
Rates adopted by the Hawaiʻi County Council for fiscal year 2026–27 (July 1, 2026 to June 30, 2027), as reported by Big Island Now. Taxes are based on the county's assessed value, not the purchase price. Confirm current rates and your classification with the Hawaiʻi County Real Property Tax Office.
Illustration only: a second home assessed at $5 million would be taxed roughly $22,200 on the first $2 million, $29,000 on the next $2 million, and $17,000 on the last $1 million, about $68,200 a year before any exemptions. Actual bills depend on the county's assessed value and classification.
Not tax advice. Marco In Kona does not provide tax, legal, lending, or investment advice. Review this with your own CPA, attorney, or advisor before acting.
Only where zoning allows. Hawaiʻi County requires short-term vacation rentals to be registered, and in most residential zones new ones are not permitted unless the property already holds a nonconforming use certificate. Resort-zoned properties and some other districts differ, and state law now allows counties to phase out vacation rentals. Rental income is also subject to Hawaiʻi general excise and transient accommodations taxes. Treat any rental projection as unconfirmed until zoning and registration are verified. See buying a Kona vacation rental.
| Item | Why it matters |
|---|---|
| Lava flow hazard zone (USGS 1–9) | Affects insurability and premium; Kona and the Kohala Coast are generally in lower-hazard zones |
| Flood zone | Oceanfront parcels may be in VE or other special flood hazard areas |
| Wastewater | Sewer, septic, or cesspool; Hawaiʻi requires cesspools to be upgraded by 2050 |
| Water source | County water, private system, or catchment |
| Land tenure | Fee simple or leasehold |
| Permits and zoning | Unpermitted structures, ohana units, and agricultural zoning restrictions |
| Shoreline | Certified shoreline, setbacks, and public access easements on oceanfront parcels |
Marco A. Silva regularly works alongside clients' attorneys, CPAs, and wealth managers, and can introduce Hawaiʻi professionals when needed. He can provide market data, comparable sales, and off-market opportunities, manage confidential showings, and run due diligence on the ground while the principal is off-island. Contact Marco to discuss a client's brief.
Some advisors view trophy Hawaiʻi Island property as a scarce, tangible asset because luxury land with privacy and turnkey homes is limited. Real estate is illiquid and carries specific risks, so whether it fits a client's portfolio is a decision for the client and their financial advisor. Marco provides market data, not investment advice.
The Seller pays the Hawaiʻi conveyance tax. It is tiered by sale price, and a higher schedule applies when the Buyer does not qualify for the county home exemption.
HARPTA requires a Buyer to withhold 7.25% of the gross sale price when a non-resident of Hawaiʻi sells Hawaiʻi real property, and remit it to the state as a credit against the Seller's Hawaiʻi income tax. A withholding certificate can reduce it in some cases.
Yes. Hawaiʻi does not restrict real estate ownership by non-residents. Foreign owners should understand FIRPTA withholding on a future sale and work with a Hawaiʻi attorney and CPA on structure.
Only if zoning and county registration allow it. In most residential zones, new short-term vacation rentals are not permitted unless the property already holds a nonconforming use certificate. Verify zoning and registration before relying on rental income.
Last reviewed October 15, 2026 by Marco A. Silva, Coldwell Banker Island Properties (RB-20599). Information is believed reliable but not guaranteed, and laws, tax rates, and flight schedules change. This page is general information, not tax, legal, lending, or investment advice.
Hawaiʻi Island Buyer Guides