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I am about to travel to Japan for a year, and I am trying to list things that shouldn't be done in the country so that I don't offend anyone while I am there. One thing I have heard a lot is that Japanese people would rather sniff a lot than blow their nose, as snot is apparently something as badly seen in public than pee.

As I totally respect their way of seeing it, I feel like it may be a problem during my trip. I am often (at least once every two weeks) sick, as if I had caught a really bad cold, and I am used to often blow my nose so that I can breath normally again. The problem is that, as I really don't want to be disrespectful to anyone, I am not sure how I will manage this situation at the moment, except trying to live with it until I reach a private place where I could do it.

Is blowing your nose in public really badly seen in Japan? And, if that's the case, are there any places where it is accepted, except in total privacy?

Yes, loudly blowing your nose in public is considered bad manners in Japan - not quite public urination level of bad, mind you, but distinctly rude nonetheless. On any Japanese commuter train you can observe stuffy-nosed people valiantly sniffing for an hour, but not blowing their nose to clear it. Particularly in more formal settings (meetings, group dinners etc), most Japanese would excuse themselves and go to the bathroom if they need to blow their nose. This applies in particular to women.

That said, quietly dabbing at your nose with a tissue is acceptable, in less formal settings (say, in a park) nobody will mind, and there will always be people who are untroubled by observing social norms. Which, incidentally, also applies to public urination, as you can easily verify by visiting an entertainment district late on a Friday night; there's a reason an underpass north of Shinjuku station is called 小便横丁, lit. Piss Alley.

And a final note: as a foreigner, you're largely exempt from observing most social niceties anyway, so no, nobody is going to be mortally offended or cut you down with katana if you honk your horn in public.

It is not offensive to blow your nose in public. That Japanese people prefer sniffing to blowing is because many people (especially men) don't usually carry tissues, and also because of the lack of trash cans in public.

To keep sniffing your nose is likely considered more rude than to blow your nose (one-off sniffing is no problem at all).

However, some people (likely from 15% up to 40%, I guess) find it disgusting to see someone blow his/her nose while eating. It is OK in fast-food chains such as cheap beef-bowl restaurants since no one cares about the manner there, though (actually it is common to see middle-aged salarymen eat like a barbarian, chewing with his mouth open and issuing obnoxious noises, which is considered far more offensive). But in normal restaurants (price per person exceeds 2,000 JPY) you might be better to avoid it if possible.

If you could still be more attentive, go to a toilet and blow your nose there. But I feel this is going too far.