The move from Barcelona to the French club, which is known as PSG, will also see the 25-year-old pocket $34m after taxes, making him the highest paid footballer in the world.
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The fee is more than double the 105m euros ($124.7m) Manchester United agreed with Juventus to bring Frenchman Paul Pogba to northern England.
Nasser al-Khelaifi, PSG’s president, said Neymar would help the club realise its “greatest dreams”.
But for many on social media, the huge sum – as opposed to the prospects of trophies – is what has seen people dreaming.
Many pondered what they could buy for the Brazilian’s price-tag, with ideas ranging from battalions of Challenger tanks and properties in London’s most expensive areas, to the number of chocolate bars or cups of coffee.
Others thought about how such a sum could be used to alleviate problems, such as the ongoing Syrian refugee crisis.
Here, we list just some of what you could do with $263m at current prices:
137 properties in London’s most expensive borough
Right Move, a property listing website, puts the average house price in London’s most expensive area of Kensington at 1.47m British pounds ($1.91m).
Anxiety about housing is growing in the UK, with many young people unable to afford properties in the capital due to runaway house price inflation.
1,004 four-year degrees for students at MIT
The Massachusetts Institute of Technology (MIT) ranks as one of the best universities in the world, but studying there can set a student back around $65,000 a year in tuition fees and living costs.
Student debt in the United States is estimated at around $1.44 trillion.
One Boeing 787 Dreamliner
Neymar has his work cut out trying to compete with a passenger airliner, with the price of one standard-sized jet costing between $224m and $300m depending on the model.
Educate 1.15 million Indian primary school students for one year
It costs India around $229 to provide primary education to a pupil for one year in one of its state schools.
Around 8.4 million children in the country are out of the education system.
Pay Bill Clinton to speak for 42 whole days
According to the Wall Street Journal, the former US president received $260,000 for a speech in 2014 that lasted less than an hour.
Assuming the same rate, Neymar’s transfer fee could buy 1,011 hours with the former US president, or 42 whole days.
Run the US military for three and a half hours
With a proposed budget for 2018 of $639.1bn, Neymar’s transfer fee would allow the US military to operate for a few hours.
The US has the largest military budget in the world, followed by China at $215bn.
Just over 2.25 percent of global GDP goes to military spending, according to the World Bank.
Six Greek islands
The 1335-acre Greek island of Dulichium is currently on sale for $44m.
Cover 0.013 percent of money lost to corruption globally
Neymar’s fee would barely make a dent in recovering this money, at 0.013 percent.
Run a Syrian refugee camp in Turkey for 11 years
Three-quarters of a Lionel Messi
Neymar’s former Barcelona teammate has a release clause in his contract of around 300 million euros ($354m).