An investigation has been launched by Portuguese aviation authorities, the GPIAA and ANAC, into the tragic accident.
The victim, Briton Graham Dixon, aged around 70, was resident in the Armação de Pêra area.
He is said to have taken up the hobby in recent years and had towed the small aircraft down to Portugal from the UK.
The microlight came down just short of a runway at a local airfield where a small unofficial flying club operates. Reports claim the aircraft was spiralling out of control before it hit the ground.
Locals say they are in shock with the incident, exacerbated by the fact it occurred in apparently perfect weather.