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Your island has two storage spaces:

Thumb Treehouse

Windmill Storage holds all harvested crops and your wrapping paper (holiday update). Maximum size is 700 (since Oct,6 2016 update) storage slots.

Treehouse Storage holds all other resources and goods. Maximum size is 700 (since Oct,6 2016 update) storage slots.

Upgrade pieces can occasionally be found in daily chests, merchant ships and seal dives.

Thumb Windmill

Guide

SS WindmillStorage

1) Measures your current storage capacity (this picture shows 36 out of 50 storage slots are filled).
2) Displays your stored items and their quantity.
3) Displays resources needed to increase storage space.
4) Tap to increase storage space (once resources or gems are available). Different resources are required for each of the storage spaces, and more resources are required each time you increase your storage


It’s always a good idea to monitor your storage space to see what you can fit. Remember to upgrade when necessary!

Portrait-Pike
Reference:

The above is Quoted in part or full directly from the Official Paradise Bay FAQ

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