Each nation has a Capital, which is its seat of government.

Your Capital can build all the units normally available in an habitation of its current size, plus some additional units (see below). A Capital yields 1 gold in taxes each turn, in addition to the normal revenues for its habitation.

If your Capital is conquered, the game automatically transfers your Capital to another province. It will transfer to a province of your nationality in preference to a conquered province, but if all your original provinces have been captured, you will end up with a Capital in a province not of your nationality. This means that both units of that nationality and those of your own can be built in the Capital, because the Capital bonus is added to the units already available in the province.

If you lose all provinces and then regain one, your Capital is transferred to your new province.