British families fled in horror as a knife-wielding thug tied a man to balcony railings after “slitting his throat”.
Chilling footage taken in the Costa del Sol shows the crazed attacker, clad in swimming shorts, brandish the large kitchen blade and wave it at the victim.
Witnesses, said to include British expats, can be heard screaming in terror on the ground.
The victim, wearing just underwear and socks, reportedly had his throat cut on the third-floor balcony.
A Spanish flag or towel can be seen next to the pair in Duquesa, a port near Estepona popular with tourists.
It is understood police rushed to the scene and were able to access the flat after a British couple staying in the same block handed over their keys.
The attacker was believed to have been arrested.
But he hurled his mobile phone and the knife over the balcony edge, reports claim.
The victim was rushed to hospital in an ambulance but the severity of his injuries are unclear.
A barman working nearby said: “Suddenly there was all this commotion and I looked to see what was happening outside, then all these people started running into the bar.
“They were screaming that there was a man with a knife, everyone was looking up and could see the other man tied up and bleeding up on the balcony.”
Another panicked local told Olive Press the yob was a behaving like “a maniac”.
The guy with the knife seemed like a maniac, when police dragged him away he was smirking and winked at people.
“It was so weird,” the witness said.
Philip Day, a British oil worker living in Estepona, said: “When I saw the man with the towel covering his face I thought he was going to kill him.”
The pretty marina at Duquesa, just west of the plush Marbella, is enjoyed by tourists from around the world.
The promenades are lined with restaurants and bars, and the watersports companies offer boat trips and excursions on the Mediterranean Sea.