Phytic acid (PA) is a major source of inorganic phosphate (Pi) in the soil, however the plant lacks the capacity to utilize it for Pi nutrition and growth. Microbial phytases constitute a group of enzymes that are able to remobilize Pi from PA. Thus, the use of these phytases to increase the capacity of higher plants to remobilize Pi from PA is of agronomical interest. In the current study, we generate transgenic Arabidopsis lines (ePHY) overexpressing an extracellular form of the phytase PHY-US417 of Bacillus subtilis, which are characterized by high levels of secreted phytase activity. In presence of PA as sole source of Pi, while the wild-type plants shows hallmark of Pi deficiency phenotypes, including the induction of the expression of Pi starvation induced genes (PSI, e.g PHT1;4) and the inhibition of growth capacity, the ePHYover-expressing lines show a higher biomass production and no PSI induction. Interestingly, when co-cultived with ePHY over-expressors, wild type Arabidopsis plants (or tobacco) show repression of the PSI genes, improvement of Pi content and increases in biomass production. In line with these results, mutants in the high affinity Pi transporters, namely pht1;1 and pht1;1-1;4, both fail to accumulate Pi and to grow when co-cultured with ePHY overexpressors. Taken together, these data demonstrate the potential of secreted phytases in improving the Pi content and enhancing growth of not only the transgenic lines but also the neighbouring plants.