I have found a no-computer solution looking at a few patterns and bringing the possible solution set to 4 trial-and-error solutions, out of which 1 seems to solve it. And I would like to apologise in advance for using the hint. I am extremely sorry because using hints means I lack some understanding somewhere.
We start with the basic $5\times 5$ magic square (called basic hereafter):
\begin{bmatrix} 17 & 24 & 1 & 8 & 15 \\ 23 & 5 & 7 & 14 & 16 \\ 4 & 6 & 13 & 20 & 22 \\ 10 & 12 & 19 & 21 & 3 \\ 11 & 18 & 25 & 2 & 9 \end{bmatrix}
The matrix we want to find and is partially given is (called special hereafter):
\begin{bmatrix}?&10&?&12&?\\?&?&?&?&?\\?&?&13&?&?\\?&?&?&?&?\\?&14&?&16& \end{bmatrix}
Observe that both $10$ and $12$ go from row $4$ of basic of to row $1$ of special and $14$ and $16$ go from row $2$ of basic to row $5$ of special. Let's then follow the assumption that the first row of special is a permutation of the fourth row of basic and similarly the fifth row of special is a permutation of the second row of basic.
We tackle the former case first. Observe that $10$ is in the first column of basic and in the second column of special, whereas $12$ is the second column of basic and in the fourth column of special. Following the pattern, $19$ is in the third column of basic and hence should move to the sixth column, which is the first column modulo $5$ of special. Also, $21$ is in the fourth column of basic and hence should move to the eighth column, which is the third column modulo $5$ of special.
The latter case is similarly solved, which gives us:
\begin{bmatrix}19&10&21&12&3\\?&?&?&?&?\\?&?&13&?&?\\?&?&?&?&?\\23&14&5&16&7\end{bmatrix}
Now look at the primary diagonal of special. It contains $19,13$ and $7$, which are three elements from the third column of basic. Assume that the primary diagonal of special is a permutation of the third column of basic.
Also, for the sake of the arguments that follow, we label some elements of special:
\begin{bmatrix}19&10&21&12&3\\?&c&?&b&?\\?&?&13&?&?\\?&a&?&d&?\\23&14&5&16&7\end{bmatrix}
Then we now have $c=1$ or $25$ and $d=25$ or $1$ respectively. Observe that both solutions satisfy condition three and four of "difference".
We look at possible values of $a$ and $b$ (Note that $a+b=26$). Given condition three and four of difference, the following conditions follow:
$$a\le 10\ \text{or}\ a\ge 18\\ a= 1\ \text{or}\ a\ge 9\\ a\le 9\ \text{or}\ a\ge 17\\ a\le 19$$
This gives that the possible values of $a$ are $\{1,9,18,19\}$. Correspondingly $b$ has possible values $\{25,17,8,10\}$. Since $b\ne 25$ (since $c$ or $d$ has value $25$) and $b\ne 10$ ($10$ has already been used), the possible values of $a$ and $b$ reduce to $\{9,18\}$ and $\{17,8\}$.
Thus we have $4$ cases to check, which are the possible values of the $4$-tuple $(a,b,c,d)$. The first possibility is $(9,17,1,25)$. This gives:
\begin{bmatrix}19&10&21&12&3\\?&1&?&17&?\\?&?&13&?&?\\?&9&?&25&?\\23&14&5&16&7\end{bmatrix}
This is not possible as the remaining element of the second column is $31>25$.
The next possibility we check is $(9,17,25,1)$ which gives:
\begin{bmatrix}19&10&21&12&3\\?&25&?&17&?\\?&?&13&?&?\\?&9&?&1&?\\23&14&5&16&7\end{bmatrix}
This is also not possible because the remaining element of the second column is $7$ which has been used once.
For $(18,8,25,1)$, we have:
\begin{bmatrix}19&10&21&12&3\\?&25&?&8&?\\?&?&13&?&?\\?&18&?&1&?\\23&14&5&16&7\end{bmatrix}
The remaining element of the second column becomes negative, and thus this is discarded. The only remaining solution is $(18,8,1,25)$ which gives:
\begin{bmatrix}19&10&21&12&3\\?&1&?&8&?\\?&?&13&?&?\\?&18&?&25&?\\23&14&5&16&7\end{bmatrix}
Filling in the obvious elements, we have:
\begin{bmatrix}19&10&21&12&3\\?&1&?&8&?\\?&22&13&4&?\\?&18&?&25&?\\23&14&5&16&7\end{bmatrix}
Now the third row of special looks like a permutation of the third row of basic, and we see that the third row first column element of special cannot be $20$ (as $22-20=2<4$) and hence we have:
\begin{bmatrix}19&10&21&12&3\\?&1&?&8&?\\6&22&13&4&20\\?&18&?&25&?\\23&14&5&16&7\end{bmatrix}
Also the third column of special looks like a permutation of the principle diagonal of basic, and we see that the second row third column element of special cannot be $9$ (as $9-8=1<4$) and hence we have:
\begin{bmatrix}19&10&21&12&3\\?&1&17&8&?\\6&22&13&4&20\\?&18&9&25&?\\23&14&5&16&7\end{bmatrix}
The second row of special is a permutation of the first row of basic and the fourth row of special is a permutation of the fifth row of basic. As $15-12=3<4$ and $4-2=2<4$, thus the final special square comes to be:
\begin{bmatrix}19&10&21&12&3\\15&1&17&8&24\\6&22&13&4&20\\2&18&9&25&11\\23&14&5&16&7\end{bmatrix}
One can verify that all the conditions are met by this solution and hence we are done.
This is obviously no algorithm as this does not work in a general situation, and if one asks if we got lucky, we dare say yes...