Timor-Leste's republican system places day-to-day executive leadership in the hands of the government, with a separate head of state performing constitutional duties. Xanana Gusmão serves as Prime Minister of Timor-Leste and leads the national government.

Timor-Leste has a semi-presidential or mixed executive system in which a directly elected president shares national executive responsibilities with a prime minister and cabinet. The precise balance varies by constitution and political circumstances: the president generally has important state powers, while the government is responsible for day-to-day administration and is accountable, wholly or in part, to parliament.
Legislative authority is exercised through a unicameral national parliament or assembly. It passes legislation, approves the budget, and performs the oversight and appointment functions assigned to it by the constitution. The judiciary is formally separate from the political branches, with the highest courts responsible for interpreting law and, where the constitutional system provides for it, reviewing constitutional questions.
Timor-Leste is a unitary state, meaning sovereign authority is principally vested in national institutions, although local and regional governments exercise powers assigned by law. The constitution defines the relationship among the executive, legislature, judiciary, and subnational administration. Political authority is exercised through the constitutional institutions described above, with elections, parliamentary confidence, or other constitutional procedures determining who holds office.