It should be far enough away from land so that another country may not stake claim on the island, but in a shallow enough area such that dredging and depositing sand and other building materials is relatively easy.
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Welcome Anand Sharma to Earth Science Stack Exchange. Does this answer your question? Are there seamounts as close as 100 m to the water surface and not inside any Exclusive Economic Zone?. – David Bailey Oct 16 '23 at 05:36