The city of Dubrovnik, previously a possession of Venice, was placed under Ottoman protection in 1458. A tribute, which was set at 12,500 ducats in 1481, was paid; but aside from this, and the recognition of Ottoman suzerainty, Dubrovnik was for all practical purposes independent. It entered into relations with foreign powers and made treaties with them. Its own flag flew over its ships. The Ottoman vassalage had the important result of giving the city special rights in trade within the empire. It was obviously to Ottoman advantage to have one of its dependents, rather than the Venetians, handle the Adriatic trade. Dubrovnik was in a position to make full use of the privileges that it was given. Its traders received from the Porte special tax exemptions and trading benefits. They were also allowed to set up, in major Ottoman cities, colonies that had extraterritorial rights; that is, the members governed themselves according to their own laws rather than those of the locality. Since this was a Catholic city, religious jurisdiction was also involved.
Like the Italian city-states, Dubrovnik was a republic controlled by its patrician class. The main organ of government was the senate, which represented the interests of this group. The city was both a manufacturing and a trade center and thus had a population of merchants, seamen, and craftsmen. The patricians controlled the surrounding agricultural lands. Dubrovnik retained its autonomous position until 1806, when French troops occupied the city.