The creation of San Giacomo in 1690, was decisive for the growth of this culture. It was established as a meeting place for the order of the noble people, but 30 years later (in 1720), it was changed into a theatre, signaling the beginning of a period, which was rich in artistic events. In the beginning, it hosted dramas and comedies. In 1733, after a proposal of the theater manager Carlo Grassi, the first opera was performed, triggering operamania among the Corfu people. In the years that followed, San Giacomo was developed into one of the most important theatres of Europe, with continuous operation, even in difficult historical periods.

In the 19th century San Giacomo hosted theatre plays of the most important composers of the period. Some of them were premiere performances. Many of the opera plays were premiere performances for the rest of the country as well. In 1833, the first play with the participation of woman actors in Greece commences, (9 years before the appearance of women in the Athenian scene). In 1940 the philharmonic band of Corfu was founded, that accompanied the operas with mainly the participation of Corfu musicians.

The high degree of sensitivity for arts and for the lyric theatre, which was developed by the Corfu people, was spread out to all the social layers, and not only the affluent. There are many stories about people who preferred to be deprived from basic needs or who remained outside of the theatre in the rain, in order to enjoy an opera. Even in our days, people speak of coachmen that avoid passing near the theatre during a performance, in order not to disturb with the sound of their carrier.

In the beginning of the 20th century, the theatre San Giacomo changed into a town hall, while at the same time the new Municipal Theatre was built, covering the needs of theatre lovers. The new theatre had a capacity of 1000 seats and excellent acoustics. The Municipal Theatre of Corfu was considered one of the most complete theatres of Europe. The first performance was given in 1902. The years after had a lot of glorious moments. Unfortunately, the Municipal Theatre was destroyed on the night of 13 September 1943. It was the night the city got burned from the Germans. In 1952, the Municipal council decided to demolish the building, following the advice of an expert group. In 1980, the new Municipal Theatre was built, without, however, managing to erase the bitterness for the tragic disaster.

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