Each character has a limited amount of hit points. Whenever characters take damage through weapon attacks, poison or other harmful effects they lose hit points. Characters whose hit points drop to zero die. However, in Tibia, death is not the end. Characters that have died will always be returned to the temple of their home city safe and sound, so even though it is possible for characters to die they are in fact immortal. However, this does not mean that dying does not matter at all in the game, nor is death desirable. A character that dies will suffer the following penalties:

• Experience Loss
  Characters that die lose a certain amount of their experience points. Characters up to level 23 lose 10% of their total experience points. Starting at level 24, the total percentage that is lost is declining and is easier explained by the number of levels that are lost. Every 50 levels, a character loses half a level more, starting with losing 1 level for a character at level 50. A character at level 100 will lose 1,5 level upon death, at level 150 2 levels, at level 180 character 2,3 levels, at level 200 2,5 levels etc.
  If a character is promoted, the total amount of lost experience points is lowered by 30%. Moreover, your character can also collect blessings in the game which will further reduce the loss of experience points. Each blessing will reduce the loss by 8%, so promoted characters that have received all 5 blessings will lower their total experience point loss by 70%.
• Skill Loss
  In addition to the loss of experience points, a character's skills will also be reduced on dying. However, this does not necessarily mean that your character will lose levels in every skill because of the way skill level advancements are calculated. If your character was close to an advancement in a given skill when he died, he may actually not lose a skill level at all, although he will take much longer to advance in that skill again. Similar to experience loss, skill loss will be reduced if a character is promoted or if he has received one or more blessings.
• Item Loss
  Finally, characters that die have a chance of dropping items. This chance is 10% per equipped item, however, containers such as bags or backpacks will always be dropped along with their contents. By buying blessings, characters reduce their chance to lose equipment by the following percentages:
  • 1 blessing  = 30%
  • 2 blessings = 55%
  • 3 blessings = 75%
  • 4 blessings = 90%
  • 5 blessings = 100%

A character with all 5 blessings will neither lose its backpack nor any other equipment it is wearing. Characters that do not have all blessings, can also protect all items in their character slots by an item called the "Amulet of Loss" which will effectively prevent your character from dropping any item upon death unless your character is marked with a <a href="http://www.tibia.com/gameguides/?subtopic=manual&section=combat#skullmarks">red skull</a>. Characters that are marked with a red skull will always lose all equipment whenever they die.
Any items lost upon death will remain with the body of the deceased character and can be looted by any player who happens to find it. In case a character has lost its bag or backpack after death, it will receive an empty bag in the container slot.