This document summarizes key information about living and working in Japan as an expatriate. It provides details on Japan's culture, economy, and cost of living. The economy relies heavily on manufacturing and exports, though it struggled with recession in 2014 due to a sales tax increase. Living in major cities like Tokyo and Osaka is expensive, ranked among the most costly globally, though salaries are also high. Housing is typically small apartments, with rent and other costs lower outside major urban areas. Overall, Japan offers a unique cultural experience and ranks favorably for quality of life, safety, education and career opportunities.

1. MOBILITY STUDY:
JAPAN
Japan offers expatriates
an exciting opportunity
to experience a
distinct, unique culture.
Currently, close to
two million expats live
in Japan, of which an
estimated 75-percent
are from neighboring
Asian countries.1
ABOUT JAPAN
FACTS
>> Capital: Tokyo
>> Population: 127 million
>> Climate: Continental (hot summers,
cold winters, and little rainfall)
>> National language: Japanese
>> Local currency: Japanese yen
>> Prime minister: Shinzo Abe
ECONOMIC TRENDS
Japan’s industrialized, free market economy is
the third biggest in the world by nominal gross
domestic product (GDP). The country has the
largest electronics industry and the third-largest
automobile industry in the world. Japan’s
economy is also well known for its efficiency
and competitiveness in export-oriented sectors.
However, productivity is lower in areas such as
agriculture, distribution, and services.2
Japan unexpectedly sank into a recession in
2014, as its economy struggled to shake off the
impact of an April sales-tax boost. GDP shrank
an annualized 1.6-percent in the three months
through September 2014. Unadjusted for price
changes, the economy contracted an annualized
three-percent, according to the Cabinet Office in
November 2014. Japanese stocks then slumped.3
Japan’s economy grew less than previously
thought in the fourth quarter of 2014, but still
crawled out of its recession, according to
revised figures in early 2015.4
The Index of Economic Freedom ranks countries
on quantitative and qualitative factors,
including property rights, fiscal freedom,
government spending, regulatory efficiency,
and open markets. As of 2015, Japan’s
economic freedom score is 73.3, making its
economy number 20 on the list. Its score is
nearly one point higher than 2014, with modest
improvements in labor, business, and trade
freedoms. Japan ranks 6 out of 41 countries
for the Index of Economic Freedom score in
the Asia-Pacific region, and its overall score
is above the world and regional averages.5
A POPULAR EXPAT DESTINATION
The Japanese embrace western cultures and
trends, and generally receive westerners
positively, making it a go-to destination for
expats. Language and communication can
be difficult, especially in the rural areas, but
English-speaking doctors and international
schools are available in the bigger cities.
Coming in at 18 on the Expat Explorer overall
league table, Japan offers great quality of life
for natives and expats alike, especially families.
Japan’s crime rate has always been relatively
low, but in 2015, official figures show that it
has dropped even lower. Official Organization
for Economic Co-operation and Development
(OECD) figures ranked Japan as the safest
country in the world in terms of crime. The
organization attributed an aging population,
better safety technology, and less use of cash
as the reasons for lower crime rates. Nearly
9 in 10 (86-percent) expats in the 2014 Expat
Explorer survey associate the country with
higher personal security.6
Equally, the vast majority of expat parents
(94-percent) say that the well-being of their
children improved since moving, and no expats
at all say that it became worse, putting Japan
well ahead of any other country in the child
safety stakes. With Japan ranking fourth in the
raising children abroad league table, safety is
not the only area in which the country excels for
parents. Many global expats cite the quality of
education available to their children, and Japan
ranks the highest out of any other country in this
respect with 81-percent of expats (compared to
the 46-percent global average), noting this as a
benefit of expatriation.7
COST OF LIVING
Japan is famous worldwide for being an
expensive place to live. This is supported by
the findings of the 2014 Mercer Cost of Living
Survey, which placed the city of Tokyo as the
seventh most expensive city in the world to
live. However, Tokyo is not as expensive as it
was in 2013, as the city dropped four spots.
1
ExpatInfoDesk.“LivinginJapan.”
2
TradingEconomics.
3
KeikoUjikaneToruFujioka.“JapanUnexpectedlyEntersRecessionasAbeWeighs
TaxEconomy.”BloombergBusiness,November16,2014.
4
Ibid.
5
“2014IndexofEconomicFreedom.”www.heritage.org
6
HSBCExpatExplorerSurvey2014.
7
Ibid.
Baker’sDozen
CustomerSatisfactionRatings
2015 Winner
RELOCATION

2. Relocation Services
Transformed on Six Continents
Global Employee & Office Relocation,
Move Management & Workplace Services
APAC Headquarters: Singapore
4 Shenton Way | SGX Centre 2, #29-01
Singapore, 068807
+65.6302.5111
EMEA Headquarters: Czech Republic
Malé nám stí 459/11
110 00 Prague 1, Czech Republic
+420.225.982.819
World Headquarters: USA
16346 Airport Circle | Aurora, CO 80011 USA
+1.800.723.6683 | marcom@graebel.com
The information contained in this document represents the current
research of Graebel Companies, Inc. on the issues discussed as of
the date of publication. This document is for informational purposes
only and does not serve as an endorsement of products nor providers.
Graebel cannot guarantee the accuracy of any information presented
after the date of publication.
© 2015 Graebel Companies, Inc. All rights reserved.
All trademarks are property of their respective owners.
MOBILITY STUDY:
JAPAN
Osaka came in at 23 on the list, dropping by
11 spots.8
It is important to remember that
Japanese salaries are also quite high, and that
the average Japanese standard of living ranks
among the highest in the world.9
“Japanese cities have dropped in the ranking this
year as a result of the yen’s weakening against
the U.S. dollar,” said Nathalie Constantin-Métral,
principal at Mercer. Expatriates living in either
city need a significant budget, especially to enjoy
western luxuries. Many expatriates find that they
can significantly lower their expenses if they are
prepared to live outside of the main cities and
adjust to living similar to the locals.
For an overall cost of living perspective, Japan
is 23-percent less expensive than New York City.
Grocery shopping and dining out are ranked high,
while costs for transportation and education are
ranked lower. See Figure 1 for a list of everyday
items and prices in Japan. See Figure 2 for an
index of cost of living scores for Japan compared
to New York City, which ranks at 100.
HOUSING IN JAPAN
Housing is among the most expensive in the
world. City apartments are usually small and built
up. Apartments are common in cities and where
the majority of expats living in Japan reside.
Older buildings with small apartments are called
“apato.” Newer buildings with larger apartments
are called “mansions,” and they usually have
more than two stories made of concrete.
Both serviced and unfurnished apartments
are available. Serviced apartments are
usually furnished and offer regular cleaning
and concierge services. Unfurnished
apartments sometimes have basic appliances
such as a washing machine, but many don’t
have lighting fixtures. Another popular option
with expats is the gaijin house – shared
accommodations in large houses and usually
inhabited by young expats and Japanese who
are looking to save money.10
Generally, the closer housing is to a city center
and public transport, the more expensive it is.
A typical lease is signed for one or two years.
It is standard practice to pay a damage deposit,
“key money” gift to the landlord, and two
months’ rent in advance. In some apartment
buildings, a monthly maintenance fee may
also be required. Utilities are also not normally
included in the rental. To rent in Japan, expats
will generally require a guarantor, usually an
employer, to assist them in the process.11
GLOBAL EXPERTISE FOR
SUCCESSFUL RELOCATIONS
Graebel worldwide offices are staffed with
global relocation industry experts who are
ready to help companies and their assignees
on long- or short-term assignments in Japan –
or anywhere on six continents. As the industry
leader, Graebel proactively provides
pre-departure to ongoing assistance, helping
clients’ employees remain productive
throughout the assignment. For answers to
questions concerning relocations to Japan,
contact Graebel today.
8
Mercer’s2014CostofLivingSurvey.
9
ExpatArrivals.
10
Ibid.
11
Ibid.
12
www.numbeo.com.
13
Ibid.
FIGURE 1: PRICE OF COMMON ITEMS IN JAPAN12*
USD EUR GBP SGD
Loaf of bread $1.45 1.34 € £0.66 $2.00
Bottle of wine $9.92 9.14 € £6.56 $13.70
One-way bus ticket $1.65 1.52 € £1.10 $2.28
Pair of sport shoes $66.38 61.17 € £43.88 $91.65
One-bedroom
city apartment
(monthly rent)
$706.56 651.12 € £467.08 $975.51
One ticket to
the movies
$14.87 13.70 € £9.83 $20.53
Imported beer
at a restaurant
$4.13 3.81 € £2.73 $5.70
FIGURE 2: COST OF LIVING
IN JAPAN13
Consumer price index 77.24
Rent index 28.64
Groceries index 75.45
Restaurants index 49.67
Consumer price plus rent index 54.22
Local purchasing power 103.20