The Palace is your capital building. The farther cities are from it, the more corruption they will have. You can have only one. Under Communism the Palace reduces corruption by 50%. The Palace can be sold at any time, however, an empire that is not under Democracy or Communism and has no Palace will suffer a crippling amount of corruption. At certain points during the game, you are given the opportunity to expand the palace. There are three different architectural styles to choose from.