Is this the only bathroom? Any adjoining closets?

We have the same problem! My husband is handy and does tile for a living and my dad does plumbing so we found a space saver toilet at Home Depot. You could install a small wall hung sink. Tear out the shower and have a tile shower built in, that way you could have it fit the size you want. Put a wall hung towel ladder on the wall for easy towel storage. And a magazine/toilet paper holder from Pottery Barn will save space too :) Install a bigger medicine cabinet also will help. These are just a few ideas that came to mind...our house is 1916 so I know what trying to save space means! :)
http://www.potterybarn.com/products/mercer-magazine-rack-paper-holder/?pkey=cbath-magazine-racks
http://www.potterybarn.com/products/bennett-bath-fixtures-train-rack/?pkey=cbath-fixtures#
http://www.homedepot.com/webapp/wcs/stores/servlet/ProductDisplay?langId=-1&storeId=10051&catalogId=10053&R=100081235&catEntryId=100081235&superSkuId=202792039#.UKR-s3y9KK0

It looks like the toilet is recessed into a space And this is where you should do wall mount storage so it's above the toilet. I would put in a pedestal sink and although you lose the under sink storage, you'll have more room to sit on the toilet and won't be intimidated by the corners of the counter! Between the mirror and sink you could hang a glass shelf and update with a functional medicine cabinet. This is assuming you're doing a Minor update vs. a complete remodel.

many European commercial bathrooms are small. Look for custom (dinky) sinks. After all, we just need to wash our hands well! For storage, you can do a very small cabinet above and below the sink. If you have the money have a finish carpenter design it, if not, time to think outside the box. what is your design style? thanks for posting. I will look for a few links. ps. look at small bathroom design solutions.

https://www.houzz.com/photos/small-kitchen-ideas-phbr1-bp~t_709~a_30-231
gives you some beginning ideas about what is available. If you plan to keep the house and live in it, make this bathroom a pleasure to go into, esp if it is conveniently located. :=)

You can make the entire bathroom a "wet room". Open the shower, wall hanging toilet and sink.

What's in the area to the left of the sink, next to the shower? Can you add a wall of small shelves there? I would look into that, and replacing the sink/vanity combo with a pedestal sink (round edges so you can get back there to access the shelves). Things you need to store but would rather not see can be kept in baskets. Also, if the mirror isn't already a medicine cabinet, I would make it so. You don't have to store meds in there but they're great for shaving supplies and combs, brushes, etc.

Would really like to offer advice, but would need more photos of the space---left and right of the sink. Sorry. Upload a few more pics when you get a moment. :)

karas531, do any of these suggestions interest you?

That niche next to the shower looks perfect for a storage tower of open shelving for towels since there is not room for opening doors. A wall hung sink will leave floor space open and improve the feeling that it is more spacious. Look overhead for storage too. How high is the ceiling in this older home? My aunt in Paris had high ceilings and put a drying rack pulley system in the kitchen which she used to dry laundry up in the warm part of the kitchen. Seems something like that could work for drying towels and would clear the walls of towel bars.

amen darcy!

You could also get something like this, if it appeals to you: [houzz=]

olldbob, what a great idea, seriously! Just to have that somewhere in the house would be worth the cost! Could have used that last year when I broke my ankle and was unable to put weight on it for weeks; or the post surgery recovery; caring for an aging parent; on and on. That suggestion is a keeper.

Yes, I could see where a unit like this would come in handy, small bathroom or not. Opens up room for tons of storage, just cap off the plumbing from under the sink.

Very interesting challenge. Please sketch the floor plan and post some measurements. More photos would help enormously. Does this bathroom get used by everyone for showers? Does your budget run to paint, shelves and towel bars or will it include new everything?