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Tokyo

Japan continues to be one of the best expat destinations for professionals who want to reap a high return for their work and live in a culturally exciting environment. Japan's sustained economic recovery, and the growth in transactional work that has accompanied it, has magnified the need for law firms to grow their practices. And considering that the Japanese economy is the 2nd largest in the world (as measured by GDP) and has only 20,000 lawyers for a population of 130 million, Japan provides a fantastic opportunity for a lawyer wanting to pursue an overseas career.

Firms in Tokyo

Japan only opened its doors to foreign law firms as recently as 1987. In 2005, however, Japan lifted restrictions that limited the practices of foreign firms and is now allowing them to hire Japanese lawyers as partners or even merge with Japanese law firms. This is significant as the new rules have given foreign law firms the ability to practice Japanese law and thus capture more of the market share for legal work in Japan. Japan is now more open to foreign firms than many of its neighboring countries, such as China and South Korea (which forbids foreign firms from opening offices in the country) and most major international law firms have offices in Japan or operate as a joint venture with a Japanese firm.

Salaries and Billing Targets

Firms in Japan pay very well but the cost of living is relatively high. As of May 2008, a general indicative breakdown of annual salaries in millions of Japanese Yen is as follows:

FIRM	1 PQE	2 PQE	3 PQE	4 PQE	5 PQE
Top Tier	18.5m	19.8m	20.9m	22.6m	23.6m
Local Firms	15.0m	16.4m	18.0m	19.1m	21.0m
US Firms	22.0m	23.7m	25.0m	27.1m	28.3m

Note: as at 21/5/08, AUS$1 = 99 and NZD$1 = 80.

Taxes

The tax rates for foreign qualified professionals in Japan are better than in Australia and New Zealand although not as favourable as in other parts of Asia. The tax brackets/rates are as follows:

less than 1.95 million Yen	5% of taxable income
1.95 to 3.3 million Yen	10% of taxable income exceeding 1.95 million Yen plus 97,500 Yen
3.3 to 6.95 million Yen	20% of taxable income exceeding 3.3 million Yen plus 232,500 Yen
6.95 to 9 million Yen	23% of taxable income exceeding 6.95 million Yen plus 962,500 Yen
9 to 18 million Yen	33% of taxable income exceeding 9 million Yen plus 1,434,000 Yen
more than 18 million Yen	40% of taxable income exceeding 18 million Yen plus 4,404,000 Yen

Bonuses

Most firms pay healthy bonuses. The specific bonus calculations vary from firm to firm but are usually significant.

Relocation Expenses

These days the typical package is for flights to be paid (including immediate family), the costs of shipping, a serviced apartment when you first arrive and assistance with getting set up (e.g. providing you with the services of an agent to help you sort out accommodation etc.).

Visa Requirements

To secure a work permit you will need to be sponsored by a firm, however most firms offer this as part of their package and will help you organize it. Visas for legal service providers can be 6 months, 1 year or 3 years in duration. Alternatively, you can obtain a working holiday visa if you are between the ages of 18 and 30 and plan to stay in Japan for up to one year, however firms are hesitant to hire lawyers who only have such visas.

Qualification Requirements

Foreign qualified solicitors are not required to be admitted in Japan to practice as a solicitor but instead work as foreign legal consultants. Foreign solicitors can qualify as a foreign legal consultant if they are duly qualified as a lawyer in their home country; have engaged in the practice of law for 3 years or more; have a residence in Japan and a financial basis to perform legal services, as well as the ability to provide compensation for any damage caused to clients; are not incompetent, bankrupt, found guilty of a criminal offence or have been sanctioned by their local professional association.

Cost of Living

In recent years Tokyo has actually moved down the charts to where it currently sits at 4th most expensive, behind Seoul, London and Moscow. Central to this is accommodation costs as some of the world's most expensive land can be found in central Tokyo. Even tiny apartments in the city center are very expensive. However, housing costs are distinctly lower in Tokyo's suburbs, surrounding prefectures and in other regions and cities of Japan. Additional commuting costs are often more than not compensated by the savings on the rent, especially as many Japanese companies pay part or all of their employees' commuting expenses.