You can have multiple villages, but one and only one capital village. To change your capital (which is the first village by default), you need to build a Palace in the desired village (a level 1 Palace is enough) and then choose to make it the capital village. What are the differences between a Residence and a Palace?

• If you want to change one of your villages into your capital, you must first build a Palace in it.  In order to do this none of your other villages can have a Palace in them as only one Palace can be built per account.   Once the Palace is built, you have the choice of switching capitals.  This change is not automatic.  You must open the Palace screen and manually confirm to change the capital.
  
  Beware: There is no way to undo the capital changing!
  
   
• If you have already built the Palace in one of your villages and wish to change capitals, the Palace can be demolished and then re-built in any of your other villages (so long as the new village doesn’t have an existing Residence), and you can then make this your capital if you choose to. There is no limit to how many times you can change which village is your capital by doing it in this way.
   
• The capital village is the only village where you can upgrade resource fields above level 10 (up to theoretically unlimited level). All other villages' resource fields could only be upgraded up to level 10, except if you upgraded to a city which then has a limit of level 12.
   
• You can only build a Stonemason in your capital. With every level of the Stonemason's Lodge, the stability of buildings and wall in that village increases by 10%.
   
• Your capital cannot be conquered by a Chieftain/Chief/Senator. However, it could be destroyed (population reduced to 0) if the player has more than one village. If it is his last village left, the village will remain with zero population until the player is no longer on the server.
   
• The Palace gives you 3 village slots at level 10, 15 and 20 whereas a Residence gives you only 2 at level 10 and 20. A Palace is more expensive, but you can settle 3 villages with it vs 2 in the Residence.
   
• In the Palace you can train 3 Chiefs/Chieftains/Senators at level 20 whereas in your Residence only 2 can be trained.
   
• Palaces take more catapults to destroy than Residence.
   

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