Belgium is a federal state, with three Regions and three Communities, ten Provinces and 598 municipalities or communes.

The federal state structure has gradually evolved over the years (click here for a good summary in French). It is complicated by the fact that the Regions and the Communities overlap.

• The Regions are mainly a geographic indication. The Brussels Capital Region is wedged between the Flemish Region in the north and the Walloon Region is the South.

• The Dutch-speaking Community mainly covers Flanders and the Dutch speakers in Brussels, the French-speaking Community deals with the French speakers in Brussels and Wallonia, while the German-speaking Community is located to the east of the Walloon Region.

Taxes are levied at the federal state, regional, provincial and municipal level.