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But the average wage in Japan is only $39,319

Average wage in Estonia is way less than that (and I would imagine most of EU's average wage is less than that), at 21,420.78 USD, but we have 20% VAT.

What are your costs of living?

https://www.numbeo.com/cost-of-living/in/Tallinn

And small businesses have median wages below average.

I suspect that the small companies in Japan and Europe are below average by the same factor.

In the end it depends on the cost of living and the rents.

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