Albion Online contains 2 types of islands; non-instanced island regions and instanced player islands including guild islands and personal islands. This article covers the aspect of instanced player islands.
Islands are a premium feature that can be purchased from the Island Merchant located in all player towns. To purchase and upgrade an island, the player must have an active 30-day premium account. Once an island is purchased, it is retained regardless of premium status. Once purchased, an island can be upgraded up to level 6. Each upgrade will increase the cost in silver and take 2 minutes to complete. Upgrades are performed by the same Island Merchant used to purchase the island. Travel to an island is free when completed through the the same player town that the island was purchased from. Player islands can support up to tier 8 structures and are safe from PvP. Islands include a robust permission system that allows you to control who has access to the islands, as well as the plots, and to what degree.
Deleting an Island In some cases, you may want to delete your island in favor of a new location. You can delete your island by returning to the same Island merchant you used to purchase the island and choose “abandon”.
https://albiononline.gamepedia.com/Islands
Player Island Upgrades (6 Levels)
Guild Island Upgrades (6 Levels)
Laborers explained: