It appears the soil is already higher than would typically be allowed by code at the house (generally 6" clearance from soil top to bottom of siding material). Typically, code/inspectors are looking for a minimum of 5% grade for the first 5' with a 2% thereafter. If you are essentially flat or going up hill from the edge of your house, you may have to dig down at that 5' mark (or further depending on a myriad of factors (yard size, landscape design, etc) and put in a small retaining wall that will allow you to get the correct grade away from the house. It is common to see what you are suggesting with regards to putting a window well to allow you to raise the soil at the house and often this can be a good compromise and in some cases is very difficult to avoid. If you are looking for a quick fix, it would be better to have soil that grades away from your foundation and be technically to close to your siding than to have a negative grade and water infiltrating your basement or crawl space.

How much of your front yard, and the neighbor's land too it seems, slopes towards the basement window? Is the house foundation below street level? The answer lies in where the water must drain.

Are you getting water in the basement?

Dig a big deep hole, fill it with crushed stone and cover it with geotechnical filter fabric or add a drain pipe to a lower grade or both.

The rest of the fromt yard slopes up from the basement window towards the street. House foundation is above street level.

I’d love to add a window well + soil around to match to neighbour’s level but as mentioned it will essentially be touching the stucco siding base which I want to avoid.

Other option I was given is to excavate 6-8 ft down and waterproof with tar and blueskin. This is most expensive option though.

If we cement the area in front of the window + put up a small retaining wall on neighbour’s side will that solve the issue even if slope continues to be towards house from front yard?

IMO do it right or be prepared for water in your basement . The correct answer is to dig down and water proof the walls and then build a dam to keep the neighbors water away.

Something in your comment doesn't add up. The foundation is above street level. That doesn't match with the rest of the front of the house slopes up to the street. It should slope down to the street. If the slope is down to the street for the rest of the front of the house you must have a swale to your window. How about a picture of more of the front that includes the window.

Talk to a good landscaper. You can have areas re-graded or they may be able to install a French drain.

Pictures needed.

On paper (preferably graph paper -- easier) draw to scale the size of your lot and the size and shape of your home, including any porches, on it. Identify which side is north south east and west and draw in your driveway and any parking area that is paved. Then draw arrows about a dozen arrows identifying the direction the land is sloped -- away from or toward the house -- and number the arrows. Show pictures from and toward the house and show what drainage there is alongside the road in the front of the house. Show any objects blocking water flow. on your drawing and tell us what arrow each picture represents.

Since the only picture you posted is that window -- and if that is your primary concern -- then before the next rain, you could act to at least temporarily block water into your basement via that window until you can resolve the greater issues.

Ultimately you may need a window well and, as Jennifer Hogan suggested, a French drain.

Also agree that if the problem is severe ... throughout the yard -- more than just this window -- a landscaper may be your best path. Just make it clear that your objective, at least for now, is only to resolve the water issues not "landscape" for looks, potentially creating more yard work than you have the time or energy or budget to maintain.

Short term, if it is supposed to rain today/tonight where you live, you could invest in a plastic flower bed border to create a half circle around the window and cover that border and the window with some thick clear plastic covering the border and window.-- think table cloth plastic from the Walmart fabric department. If, in addition to duct tape, you have old curtain rods or broom handles, they might help you prop up and hold the plastic until you can have a few days of dry weather and a plan to fix the problem with a more permanent solution . Then you can use your flower bed border to create a flower bed.and/or redirect rainwater run off coming into your yard.

This is the kind of flower bed border edging that I mentioned that might provide some temporary resolution to water flowing where you don't want it to be:

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