Japan's Driver's License

The driving test itself is not difficult, but there are many simple sequences and processes that the test proctors are looking for, and if you are not aware of them, you will not pass. It is not uncommon for foreigners to take the driving test 6 times or more, simply for the lack of a little knowledge, rather than a lack of actual driving skills. Passing the first time, un-assisted, is the exception, rather than the rule. Considering that each attempt requires nearly a full day at the testing center, fees and lost wages can make converting your license on your own a time consuming, expensive, and frustrating experience. The average pass rate for Tokyo (unassisted) is 35%, and for Nagoya is 20%.
Many people visiting Japan will eventually find themselves needing to take a driving test in order to drive here – even if they already hold a valid licence from their home country. Driving on an expired permit is illegal, and you could face big fines if caught doing so, even if you feign ignorance. In order to continue driving after the first year, you will be required to change your international permit to a Japanese driving licence. Similarly, you cannot drive in Japan at all if you enter without an international permit – you must first obtain a Japanese licence.
However, converting a foreign driver’s licence to a Japanese driver’s licence can be tricky. The process varies depending on the country from which you originally obtained a licence; people from certain countries like the U.K and France are (as of November 2011) exempt from having to take a test, while others from countries like America and Brazil are required to take one in order to drive here.
Countries exempt from needing to take the written and practical driving test:
Iceland, Ireland, United Kingdom, Italy, Austria, Australia, Holland, Canada, Korea, Greece, Switzerland, Sweden, Spain, Czech Republic, Denmark, Germany, New Zealand, Norway, Finland, France, Belgium, Portugal, Luxembourg, Taiwan.