When parties cooperate, they are perceived as closer together in an ideological space than when they compete. This mechanism has only been tested at the national level and researchers have disregarded the complex interaction between parties competing and cooperating at various levels of a polity. This article argues that complex multi-level systems have an influence on the voters’ perceptions, especially for coalition parties. More specifically, the hypothesis is that voters perceive those national parties that are in government in their Bundesland as closer together on a left-right scale, even though they are not members of the same coalition at the national level. The hypothesis is tested by relying on GLES data from 2009–2021. National government participation and political sophistication are also taken into account as moderating variables. The results have important implications for understanding party perceptions and the effect of regional government participation in multi-level systems.