We present a study of the circumnuclear region of the nearby Seyfert galaxy Mrk573 using Chandra, XMM-Newton and HST data. The X-ray morphology shows a biconical region extending up to 12 arcsecs (4 kpc) in projection from the nucleus. A strong correlation between the X-rays and the highly ionized gas seen in the [O III] image is reported. Moreover, we have studied the line intensities detected with the RGS/XMM-Newton and used them to fit the low resolution EPIC/XMM-Newton and ACIS/Chandra spectra. The RGS spectrum is dominated by emission lines of C VI, O VII, O VIII, Fe XVII, and Ne IX, among others. A good fit is obtained using these emission lines found in the RGS spectrum as a template for Chandra spectra of the nucleus and extended emission. The photoionization model Cloudy provides a reasonable fit for both the nuclear region and the cone-like structures. For the nucleus the emission is modelled using two phases: a high ionization [log(U)=1.23] and a low ionization [log(U)=0.13]. For the high ionization phase the transmitted and reflected component are in a ratio 1:2, whereas for the low ionization the reflected component dominates. For the extended emission, we successfully reproduced the emission with two phases. The first phase shows a higher ionization parameter for the NW (log(U)=0.9) than for the SE cone (log(U)=0.3). The second phase shows a low ionization parameter (log(U)=-3) and is rather uniform for NW and SE cones. In addition, the nuclear optical/infrared SED has been modeled by a clumpy torus model. The torus bolometric luminosity agrees with the AGN luminosity inferred from the observed hard X-ray spectrum. The optical depth along the line of sight derived from the SED fit indicates a high neutral column density in agreement with the classification of the nucleus as a Compton-thick AGN.