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You would have to "own" a given segment of water before making an island. In the ocean or in the sea, ownership of the water is by nations, not individuals.

An existing island can be bought, but it is subject to the laws of the nation that owns that territory.

You could buy a property that had a lake, and make an island on that lake, but you cannot then make laws. That would imply you are sovereign, and that's a long process.

In order to be sovereign, you must declare independence from the nation that currently rules that area. Then you must fight off their armed forces for long enough that you either defeat them or force them to grow weary of fighting you. Then you must get them to acknowledge you by means of a treaty. Then you must have other nations recognize you - and you can do that while fighting if you like.

To get that recognition, you must show that you have a viable population, economy, military, police, infrastructure and system of laws in place.

Finally, having done all that, you can petition to the U.N. for acceptance.

None of that is likely to happen. You will note that even whacky billionaires don't try that, they stick with safer and saner things like round the world balloon trips, polar bear baiting and trying to build private hotels on the moon!

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Q: If you made an island what laws will you need for it?
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