The Austrian domination in Naples begins in 1707 with Charles III of Austria.
The lack of recognition by the Pope of Charles III worsened relations between Vienna and Rome, resulting in an anticlerical behavior of the government that issued a series of decisive measures to solve the housing problem.
In 1708 the king issued three edicts ordering the seizure of the revenues attributable to the prelates residing abroad, the prohibition to transfer money in the Papal States and to grant exequatur to the papal documents.
In the Neapolitan society took root an increasing anti-clericalism that prepared the ground for the laws subsequently prohibiting the construction of churches and monasteries. Meanwhile, the Neapolitans had memorials to the authorities so that the answer to the question of inequality building – including civil and ecclesiastical buildings – could come to solution.
The problem was two-fold, they wanted to put a stop to the construction of churches and monasteries, but at the same time demanded that religious structures pay taxes. In 1712 a memorial was presented by the ambassadors of Naples describing the bad conditions of universities in the kingdom of Naples, and the causes were attributed to excessive purchases by clergy who had immunity from paying taxes for the housing maintenance.
The Austrian Government despite the initial hopes, showed a moderating policy, and was partly collaborationist with clergy and nobles. Only in 1717-1718 Charles VI granted the opportunity to build freely in the capital, by issuing a notice putting rules on constructions.
This decision, however, did not have the expected results on the development of Naples, allowing the regularization of houses built earlier in prohibited areas, and stimulated the building along the villages. There was no intervention of the authorities regularizing constructions according to a larger pattern, but everything was left to chance and to the interests of the individual. The villages although appendages of the city with palaces and churches, were lacking of any equipment and continued to weigh on capital.
In the thirty years of the Austrian viceroyalty only two urban developments are worthy of note – the renewal of the road along the beach of Marinella, with the start of the castle of Mount Carmel, and in 1732 a road parallel to the first one crossing the village Loreto.