The use of urea as nitrogen (N) fertilizer in agriculture needs to consider environmental, economic and resource conservation aspects because of low N‐use efficiency (NUE). Polymer‐coated urea (PCU) offers an effective way to improve the NUE of urea and to reduce its environmental trade‐offs. However, we lack information on the impact of climate and soil properties on N release from PCU. Therefore, this study was performed to quantify the effects of soil texture, moisture and temperature on the release kinetics of N from PCU. We designed a test system for soil incubation experiments and investigated three fertilizers with different release patterns, five topsoils, three moisture levels and two temperatures over 48 days. We analysed the concentrations of inorganic N ( and ) in the soil and estimated N release rates using the unified Richards model. Soil texture did not change the N release patterns, but release rates varied significantly among the investigated soils. Changes in soil moisture for a given soil had no effect on N release from PCU and urea when fertilizers were incorporated into the soil at conditions supportive of crop growth. Lowering soil temperatures, however, decreased N release rates from PCU by 16%–49% but only in silt loam and not in sandy loam. We conclude that PCU improves the N residence time in soil, but predictions on N release from PCU must be adapted to the prevailing environmental conditions and cannot be generalized across differently textured soils.