The Capital is the town you start with, when you set up an account.
Effects[]
The Capital receives certain effects that make it the most powerful town of your empire:
Happiness and Housing space[]
There is two major effects to your capital. After you research Well Digging ( Science ), the town in which you palace stands (this is automatically your capital) receives a +50 happiness and +50 housing space bonus. Furthermore, after you research Utopia ( Economy ), its +200 happiness and housing space bonuses will apply only to your Capital.
Colonization[]
In order to create more colonies, you need to upgrade your Palace in your Capital. The Palace can only be found there, all of the other colonies have a Governor's Residence. Also, there is no corruption in your capital. Therefore, the citizens in the capital always work diligently to produce building material and luxury goods.
Military[]
You can occupy as many towns as the level of the Palace in your Capital. Also, the island where your capital stands has a Barbarian Village on it, which you can pillage. A new player can loot valuable resources and also learn about the battle system by constantly pillaging it.
Moving your Capital[]
You cannot change the position of your Capital, until you have built a second town or your first colony. To build a second colony, you have to upgrade your Palace in your capital. As soon as you upgrade a Governor's residence to a palace on a second town, it will destroy the first Palace and the new colony with the Palace is now your Capital. The Capital's Palace will be completely destroyed and a Governor's residence will have to be built in place of the Palace, in order to remove the corruption that will follow.