An €8 million luxury yacht sank off the coast of Sardinia just days after being delivered to its Italian owner.

Axar.az reports, citing Italian media, that the 30-meter Angiola II was near Porto Cervo when it suffered an engine failure.

A fire also broke out on board.

All 14 people aboard, including guests and crew members, were rescued by nearby vessels and were unharmed.

The yacht is now lying on its side at a depth of about seven meters between Isola dei Cappuccini and Capo Ferro on the Costa Smeralda.

Anti-pollution barriers have been placed around the vessel, and authorities said no fuel leaks had been detected so far. The yacht will remain under monitoring until a specialized salvage company arrives, after which a tugboat is expected to bring it ashore.

The Angiola II is an Amer F100 yacht featuring a master suite, two VIP suites, two twin cabins and three crew cabins.