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The transfer of the capital is generally a dubious undertaking, but if you want to try, then you should consider only 2 cities - Rome and Constantinople. Good luck🙂
I'm curious why only those cities. (I am a relative newb to this game in spite of playing it on and off since the year it was released.)
Yes, I suppose that makes sense.
The capital designation will only affect the current city by removing its corruption. There aren't any bonuses you get. HOWEVER, capital placement affects every city in the empire based off distance. The ideal location is a centralized one.
You get different +/- on public order, and corruption, which affects income, by changing your capital.
Roughly speaking, you want it in a centralized location, assuming all cities in your empire are roughly equally productive.
Even if that is not the case, and you have sort of a productive area, and some sort of newly conquered area, often times the productive core cities can take the hit, allowing other areas to be better developed.
If you do change your capital, (which is as easy as a 1 click endeavor), make sure you check the finance tab. Changing capitals, if you haven't done it, can often net you money once it's centralized.
Also do a quick scan for any new blue or red faces (signaling public order) on settlements. The furthest away settlements are often hit the hardest.
There's no harm in trying, you can relocate the capital immediately at no cost, so I often adjust in function of the profits.
You don't need a developed city. You can actively develop it by putting in a chivalrous Governor and lowering taxes. That baby is going to grow right up pretty fast.
The only other thing it affects is merchant trading income (standing on resources) as the distance of the nearest resource to the capital determines it's base price for the faction.
Examples would be silk that barely is worth it in for eastern factions while paying a fortune for the western factions.
Or just one: Venice.
As Gigantus has said, all that really matters is a central position. Venice is more central than either of the two Romes, and is also a large coastal city, if you insist on that. The main downside of moving capitals is that many of your merchants will need to be moved to get optimum trade income.
^Just that ....
It helps balance out your empire by having your capital in the center of your empire.
Play with it to get a feel for it. Often it is simply not needed, even as England, if you move the game forward and end by turn 160-ish. Longer games become more complex :)