What good do colonies do for the domain

europa-universalis-iv

It is my first game in Europe 4: i didn't play any paradox game earlier and am confused of how colonies work

Now I have 6 colonial provinces with total income of my colonies (French Brazil) around 55. With viceroy =20% I earn from colony (Tariff efficiency) 0.75 per month (if we trust economy tab of my empire).

In the same time, until provinces joined as "French Brazil" and were just part of my country each of them with tax income around 3-4. I don't have old saves so can't proof, but I believe 4 provinces were contributing more than current 6 joined together.

I believe colony itself will keep invading other provinces that will raise my profit from colony, but my 2 colonists cost me 8 gold per month!!! And I have zero to nothing income from colony for years…

What I'm doing wrong? How to raise income from colony to be profitable?

Should I restrict amount of invaded provinces to be 4 so they don't join into another country?

Best Answer

If you establish a 5 province colony in both North and South America and they grow further by themselves you actually have quite a solid investment. In your original question you seem to have overlooked the Trade Power transfer that you get from your colonies.

Just keep in mind that the trade from the West is distributed among the 3 CoT on the West coast of Europe unevenly. If you are playing as Portugal for instance, having a colony in the Northern US is a lot less beneficial to you.

In the end, the additional Trade Value generated by the colonies once they have expanded, transferred to your home Center of Trade in part because of the "free" trade power you get from your colonies, should give you a pretty nice return on the investment you provided.

If you do need to have a faster return of investment you can always raise the tariff levels, although this does mean a higher Liberty Desire.