i got to student lvl on divine magic learned already 6 spells but i cant seem to find raise dead spell on dominicus for example...browsed the vendor several times but still nothing as if it doesnt exist..

same here

i am playing a paladin btw

Unfortunately that's what you have to do. Keep checking a vendor with spells. It's completely random. Took me a while too.

I always trade at the nameless priests next to execution area

none of the spells showed up for me until i met the requirements, make sure your skill level for divine magic is 6 or higher, INT is 18, and your at Level 15 otherwise you won't be able to find it. i figured out that before i met the requirements i couldn't get levitation, raise the dead, or healing touch. once i met the requirements you can find them all over.

This is an old post I know, but in case someone playing Inquisitor these days was wondering where the "Raise Dead" spell could be found (like I did), this might help.

I was going to vendors every time I returned to sell loot, closing and re-opening the store several times in the hope that the spell would appear, but no luck.

Divine Magic was at skill level 6 and showed mastery level "Student" in the character sheet; turned out that I had equipment that gave a +1 bonus to Divine Magic, and that my actual skill level was 5.

Upped the skill a few points on the next level up, and the spell immediately appeared in the store.