This will depend on the property boundary laws in your area. At the least, you will have to obtain permission from the adjacent property owner to encroach and legally you might have to be granted an easement for the foundation and for the construction.
Next you have to be concerned about the effect your retaining wall might have, both during and after construction, on the adjacent property. If their property is higher than yours and you are retaining their property, then you will have to protect their property from ANY lateral and vertical soil movement, particularly if they have a foundation within a zone of influence of your retaining wall. Further, it is difficult to install a retaining wall without some form of vibration. That can cause settlement of adjacent foundations and wall cracking. Be aware of this and mitigate vibrations by the selection of the construction technique.
If your property is higher than theirs, you have fewer issues to deal with, but there is still the issue of vibration and access during construction.
I would suggest a very thorough pre-construction condition survey of the adjacent property, noting and mapping any existing cracks, setting pins in the wall to check vertical movement and documenting all with notes, photos and video. The termination of all cracks should be marked so you can see if crack migration occurred during construction. You have a duty in the design and specification of the wall construction to protect the adjacent property. Approach carefully.