Tibian levels represent the experience of a character. The more experience, the more levels a character will have. All characters start at level 1 when they first enter the game, in the Tutorial Island. They gain experience by killing monsters or by completing certain quests, and with the experience comes the levels. At level 8 a character is allowed to leave Rookgaard by talking to The Oracle. There used to be another statue called The Gatekeeper which used to be for Premium Accounts. This was removed in the 8.20 update.
Every time you gain one level, you receive:
Level has a small effect on spell and melee damage. See formula.
The amount of experience needed for the next level will increase for every level a character will get. As far as known there is no limit to the number of levels that can be gained. On the official website is the full experience table where is listed how much experience is needed to reach a certain level.
When Eternal Oblivion reached level 270, there was a "tibia server database, level limit" that prevented him from gaining certain advancements for his level. This problem has been fixed.
On 6 March 2007, Mateusz Dragon Wielki was the first player to reach level 300.
On 24 December 2008, Lord'Paulistinha was the first player to reach level 400.