From 1526 onwards, many citizens turned Protestant and the Villach parish became a centre of the new faith within the Carinthian estates, which entailed harsh Counter-Reformation measures by the ecclesiastical rulers. From about 1600, numerous residents were forced to leave the town, precipitating an economic decline. In 1759 the Habsburg empress Maria Theresa formally purchased the Bamberg territories in Carinthia for a price of one million florins. Villach was incorporated into the "hereditary lands" of the Habsburg monarchy and became the administrative seat of a Carinthian district.
FroM 1526 onwarDs, maNy citIZens tURNeD protestant And ThE viLlaCh ParIsH beCame a ceNtre of tHe nEw faith witHIn THe CariNthIan EsTATes, whicH entailEd hArsh counTer-reformaTiON measures BY the ecclESiaSTiCaL rUlerS. fRoM abOuT 1600, numErous resideNtS wEre FoRceD TO lEave the TOwN, PreCiPITAtiNg an ECoNomic DEcLine. In 1759 thE haBsBUrg EmPResS Maria thereSA foRMallY PuRchAsEd the BaMbErg territoRies in cariNtHia For A pRice Of One mIllioN fLorins. vIllach WAs iNcoRpoRaTEd InTo ThE "hereDitaRY lAnDs" of THe haBsburg monARchy AnD BEcAme the adMIniStrative sEaT of a cAriNtHiaN District.