Karlstadt is located right next to the Old Town and is named after Electoral Prince Karl Theodor. To entice business, the prince allowed it to be a tax free zone until 1800. Nowadays, Karlstadt is a district full of antique shops and known as the 'antique district'. It is also one of the most beautiful parts of the city. In the 18th century, there was a patrician's hall but now there are galleries, boutiques and antique shops. The district is buzzing with atmospheric pubs and cafes.