The video, filmed on Arenal d’en Castell beach in Menorca captured the shark swimming in the water.
Happening at 1:30pm yesterday, the eight-foot blue shark swam close to where many tourists were swimming in the sea.
In the video, a tourist screams: “It’s coming. Oh my god, I think it’s dead.”
Another woman in the video then remarks: “No it’s not dead.”
Other tourists can be heard screaming in the video as they flee the water.
The shark stayed in the water for a number of hours while holidaymakers were banned from swimming.
The water was closed for the rest of the afternoon as a precaution.
No-one was injured and it was believed that the shark was not acting aggressively.
Many other tourists took their phones to film the shark swimming close to the shore.
It isn’t the first time a shark scare has occurred in the Spanish islands.
Last July, another eight-foot shark cause panic on a beach in Majorca.
Everyone was ordered out of the water and the beach was closed for the morning.
Lifeguards and first aiders were on hand when the beach later opened and prevented holidaymakers from swimming far out.
Blue sharks are common in the Mediterranean sea and around Spain.
Despite them measuring up to 12 feet in length, attacks are rare from the creatures.
From 1580 until 2013, only 13 incidents involving a bite attack have been recorded.
Just four of the recorded attacks ended in a human fatality.
Yet they are considered a dangerous species as they have been known to attack humans and boats.
Unprovoked attacks, however, are rare.
For travellers who want to avoid the risk altogether, there are a number of beaches in the world that are considered the most shark-infested in the world.