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I need to know whether to work with sharepoint templates I have to have visual studio installed on the server?

+1  A: 

No. Developers create solution packages during development and you deploy those solution packages to the server(s) using the Solutions Framework.

See http://msdn.microsoft.com/en-us/library/aa544500.aspx

Rob Windsor
Thanks Rob is that most of the examples, have VS installed on the server
Eury Vallejo
I can see your confusion. To do SharePoint development, you really need to have SharePoint installed. Unless you know this, it can appear that all development is being done on the server.
Rob Windsor

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