Tarling, the younger brother of Ineos rider Josh, was reportedly involved in a head-on collision with a vehicle, travelling in the opposite direction, which was not connected to the event on Friday.
"Following Fin Tarling's tragic passing, the NSN Development Team has withdrawn from the remaining Volta a Portugal stages," NSN said in a statement Saturday.
"With the full support of Fin's parents, the World Tour team will race on at Czech Tour and the Arctic Race of Norway.
"We will continue to hold Fin in our hearts as we race in his honour, doing what he loved most."
Friday's eighth stage was suspended with about 20 kilometres remaining and the podium ceremony was cancelled as a "sign of respect and mourning", organisers said.
A spokesman for Portugal's National Republican Guard (GNR), Tiago Machado, said there had been a collision between a cyclist and a light vehicle towards the back of the peloton.
"We do not yet know exactly the circumstances in which it unfolded. We will investigate," he told reporters.