A luxury yacht has sunk after spectacularly bursting into flames off the Spanish island of Formentera.

All 17 people on board the 27m Irmao, five crew members and a dozen passengers, escaped unhurt, according to reports.

The yacht was anchored in Cavall d’en Borràs, off the north of the island, in the Balearics, and in front of a well-known restaurant called El Tiburon. The boat’s owner is said to be Diego Gómez González, 34, a professional poker player who goes by the nickname "the Lion".

The blaze apparently began in the stern on Saturday evening and quickly spread, turning the yacht into a ball of fire. A huge column of smoke could be seen from as far away as the neighbouring island of Ibiza, nike-airfoamposite.com which is 12 miles to the north.

Rescue services were able to secure a line to the burning yacht and tow it further out to sea, where it eventually sank at about 9pm. There was no pollution reported after an inspection of the area yesterday morning.