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A republic (especially if you set it up in a quiet corner without competition from Venice & co), will develop a trade zone and start to rake in tons of cash , and thus pay you tons of taxes (at city rate)
To create your own republic, grant the county title to the mayor of a COASTAL city.
He becomes a Lord Mayor.
Now grant him the Duchy title, and he will create a new republic (with Patrician families, trade posts etc...)
Never saw the point of Prince Bishops though.
its easier to make them like you by just having good traits (like the 7 virtues or zealous) and high piety so they're more loyal than regular feudal vassals. on top of that they pay you taxes (although not as much as a republic) while still providing levies
EDIT: also lastly powerfully landed bishops have a significantly higher chance of becoming a cardinal and then becoming a pope. so if you had a large empire with a lot of count and duke level bishops then you would have a much easier time getting bishops elected. if you're somebody that actually cares about the papal elections and cardinals
-Give mayor of a city within a county the county title
-do same for the rest of the counties within a duchy
-give one Lord Mayor the duchy title
As for the Prince Bishop I guess they work the same execpt they might give their money to the Pope. I also saw that you get a -30 opinion modifier from them. I'll try an Ireland campaign and make half of Ireland a Republic and Prince-Bishop to see how it works.
Thanks for the answers
There is an exception to this - the Prince-Bishopric of Benevento. The reason for this is that the Pope controls the barony in the county of Benevento, which is held by the Prince-Bishop. As a result, he has a relation penalty against the Pope for desiring the barony.
This usually guarantees that he likes you more than he likes the Pope. Moreso if you have Free Investiture.
No, you can have vassal Republics without the need for any DLC whatsoever.