Buying Leasehold Property in the Cook Islands

Buying property in the Cook Islands is different from many other countries and it’s important to understand how leasehold land works, especially if you are a non‑Cook Islander. Whether you are considering vacant land, a residential home, or a going‑concern business, the first step is understanding the leasehold system and who can buy what.

With over 20 years of local experience in Cook Islands real estate, our team at Cook Islands Real Estate has helped many buyers from New Zealand, Australia and around the world navigate this system and make informed decisions.

Land in the Cook Islands Is Leasehold

Unlike many countries, land in the Cook Islands is only available to purchase as leasehold.

• There is no freehold land available for purchase by Non-Cook Islanders.

• Lease terms are up to 60 years (maximum period).

• Leases can sometimes be renewed or extended, subject to agreement between landowners and lessees and relevant approvals.

This leasehold system applies to both residential and commercial property across Rarotonga and the outer islands.

Two Main Categories

Residential vs Commercial (Business)

For property acquisition, the Cook Islands market can be broadly understood in two categories:

1. Residential property (homes and vacant land)

   • i.e. Houses, sections of land, private residences.

2. Commercial property / Going‑concern businesses

   • i.e. Accommodation complexes, cafés, restaurants, tourism operators, shops, automotive businesses, etc.

Each category has different rules depending on whether you are a Cook Islander, a Permanent Resident, or a non‑Cook Islander.

Who Can Buy Residential Property or Vacant Land?

Many buyers are simply looking for a house or section to call their own – somewhere to live, retire, or use as a holiday base.

For purely residential property and vacant residential land, the rules are:

• Cook Islanders and qualified Permanent Residents (P.R.)

  • May buy residential homes and vacant sections of land.

  • There are no special restrictions beyond the usual legal and lease agreements.

• Non‑Cook Islanders (without Cook Islands P.R.)

  • Cannot normally buy residential property or vacant residential land as their first acquisition.

  • Their path into property ownership usually begins with a going‑concern business.

If you have Cook Islands blood or family ties, or think you may qualify for Permanent Residency, please let us know – this can significantly affect what you are able to purchase.

Buying a Going‑Concern Business as a Non‑Cook Islander

For most non‑Cook Islanders, the usual first step is to buy a going‑concern business rather than a standalone house or section.

Examples include:

• Accommodation businesses

• Cafés, restaurants and bars

• Tourism activity operators

• Automotive and service businesses

• Mixed hospitality / retail operations

Key points:

• The business operates on leasehold land (up to 60‑year terms).

• The business entity itself can typically be owned 100% by you.

• After you have successfully operated the business for a period of time, you may then explore the possibility of purchasing residential property and vacant land, subject to rules in place at that time.

Buying a going‑concern business is also often the most practical route to:

• Apply for work permits

• Apply for or support residency permits

• Establish a long‑term base in the Cook Islands

No Zoning Laws – Mixed Use Within Each Vaka

Another important difference is that there are no formal “zoning laws” on Rarotonga in the way many overseas buyers are used to.

• Each Vaka (district) contains a mix of residential and commercial uses.

• It is common to see local homes, shops, tourism operations, and accommodation facilities in close proximity.

This means opportunities for business and lifestyle are often closely integrated, and site suitability is usually assessed on a case‑by‑case basis, taking into account landowner wishes, lease conditions, and local planning guidelines.

Key Considerations When Buying Leasehold Property

When you look at a leasehold property (residential or commercial), pay attention to:

• Lease term remaining or whether a new full‑term lease will be granted

• Annual ground rent and review terms

• Rights to renew, extend or assign the lease

• Any use conditions written into the lease (residential vs commercial use)

• Requirements for government consent or landowner approvals on change of use or ownership

Our role is to help you:

• Understand the current lease and its practical implications

• Liaise with landowners and legal advisors

• Work through application and approval processes where required

Where to Learn More

We maintain dedicated pages for more detailed reading:

• Cook Islands Leasehold Property Explained

• How to Buy Property in the Cook Islands

We also encourage serious buyers to speak directly with us so we can:

• Clarify your specific situation (Cook Islands heritage, P.R. status, etc.)

• Recommend pathways that suit your goals – e.g. buying a business first, then exploring residential ownership later.

For some extra research on the differences between residential properties and going‑concern businesses available for sale, we can also point you to current listings and relevant resources once we understand your background and plans.

Talk to Cook Islands Real Estate

Every buyer’s situation is different. Whether you:

• Are a Cook Islander returning home

• Have Cook Islands family ties and want to confirm your position

• Are an Australian or New Zealand expat looking for a lifestyle change

• Want to invest in tourism or commercial businesses

…we can help you make sense of the leasehold system and find the right path.

📞 Contact Cook Islands Real Estate to discuss your circumstances, what you are hoping to achieve, and the best way to enter the Cook Islands property market.

Contact Us

Frequently Asked Questions – Leasehold Property in the Cook Islands

Can non‑Cook Islanders buy residential property in the Cook Islands?

Generally, no. Purely residential homes and vacant residential land are normally only available to Cook Islanders and qualified Permanent Residents (P.R.). Most non‑Cook Islanders start by purchasing a going‑concern business rather than a standalone house or section.

How can overseas buyers start with a business and later buy a home or land?

The usual pathway for overseas buyers is to purchase a going‑concern business on leasehold land. After operating that business for a period of time and meeting immigration and residency requirements, you may then explore the possibility of buying residential property or vacant sections, subject to the rules in place at that time.

What is the maximum lease term for land in the Cook Islands?

All land in the Cook Islands is leasehold, with maximum lease terms of up to 60 years. Some leases may be renewed or extended by agreement between landowners and lessees and with the necessary approvals.

Are there zoning laws separating residential and commercial areas?

There are no formal zoning laws on Rarotonga in the way many overseas buyers are used to. Each Vaka (district) usually has a mix of residential homes, commercial premises and tourism businesses. Suitability for specific uses is assessed through lease conditions, landowner consent and local guidelines.

Can buying a business help me obtain residency or work permits?

Yes. Purchasing a going‑concern business is often an important step for non‑Cook Islanders seeking work and residency permits. It can provide both an income and a legal basis for living and working in the Cook Islands, subject to immigration approval.

What should I check in a lease before buying a property or business?

You should review the lease term remaining (or whether a new full‑term lease will be granted), annual ground rent and review dates, renewal or extension rights, permitted uses (residential vs commercial), and any conditions relating to assignment or change of ownership. Our team can help you understand these points and work with legal advisers where needed.

How do I know if I qualify as a Cook Islander or Permanent Resident?

If you have Cook Islands blood or family ties, or think you may qualify for Permanent Residency, please let us know. This can significantly expand your options, including the ability to purchase residential homes and vacant land. We can help you clarify your status and direct you to the right information.

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